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TABLE OF CONTENTS
Page
COA Memorandum adopting the Guide in the Audit of Procurement
Title page
Acknowledgments
Table of Contents
I
INTRODUCTION
The Development of the Audit Guide
Objectives of the Audit Guide
Scope and Limitations of the Audit Guide
II
III
i
ii
iv
1
2
3
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TABLE OF CONTENTS
X.
XI.
XII.
XIII.
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TABLE OF CONTENTS
ALTERNATIVE METHODS OF PROCUREMENT FOR
INFRASTRUCTURE PROJECT
Negotiated Procurements:
After Two (2) Failed Biddings
Emergency Cases
Take Over of Contracts
Adjacent or Contiguous
Community Participation
Small-Value Procurement
Non-Governmental Organizations (NGOs) Participation
COMPETITIVE / PUBLIC BIDDING FOR THE PROCUREMENT OF
CONSULTING SERVICES
I. Bidding Documents
II. Pre-Procurement Conference
III. Advertising and Posting of the Request for Expression of Interest
IV. Posting of Request for Expression of Interest
V. Issuance of Bidding Documents to Consultants
VI. Eligibility Checking & Short listing of Consultants
VII. Pre-Bid Conference
Supplemental / Bid Bulletins for the Procurement of Consulting
VIII.
Services
Submission, Receipt, Opening Of Bids And Preliminary Examination of
IX. Bids for the Procurement of Consulting Services (Using Quality-Based
Evaluation Procedures)
Submission, Receipt, Opening of Bids and Preliminary Examination of
X. Bids for the Procurement of Consulting Services (Using Quality-Cost
Based Evaluation Procedures)
XI. Post Qualification
XII. Award of Contract
XIII. Failure of Bidding Declared by the BAC
XIV. Failure of Bidding Declared by the HOPE
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378
406
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453
461
465
468
470
486
492
497
521
549
571
588
594
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TABLE OF CONTENTS
ALTERNATIVE METHODS OF PROCUREMENT FOR
CONSULTING SERVICES
NEGOTIATED PROCUREMENT
LIMITED SOURCE BIDDING
AFTER TWO (2) FAILED BIDDINGS
EMERGENCY CASES
TAKE OVER OF CONTRACTS
ADJACENT OR CONTIGUOUS
AGENCY-TO-AGENCY
HIGHLY TECHNICAL CONSULTANTS
SMALL VALUE PROCUREMENT
598
599
611
637
642
653
660
662
666
676
APPENDICES
1
Revised Implementing Rules and Regulations (IRR) of Republic Act No. 9184 which
became effective in September 2, 2009 as approved through Government
Procurement Policy Board (GPPB) Resolution No. 03-2009 dated 22 July 2009
Philippine Bidding Documents for the Procurement of Goods, 3rd Edition as approved
Philippine Bidding Documents for the Procurement of Consulting Services, 3rd Edition
as approved through Government Procurement Policy Board (GPPB) Resolution No.
05-2009 dated 30 September 2009
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TABLE OF CONTENTS
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viii
I. INTRODUCTION
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This Guide in the Audit of Procurement will neither cover the entire gamut of
procurement nor all possible related risks that could be subject to audit.
The scope of the Guide is limited to the following:
1. Elements of Procurement
a. Annual Procurement Plan (APP)
b. Bids and Awards Committee (BAC)
c. BAC Observers
d. BAC Secretariat
e. BAC Technical Working Group (TWG)
f. Bidding Documents
2. Procurement Processes:
a. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Goods
b. Alternative Methods of Procurement for Goods
c. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Infrastructure Projects
d. Alternative Methods of Procurement for Infrastructure Projects
e. Competitive Bidding (from Bidding Documents to Award of
Contract) for Procurement of Consulting Services
f. Alternative Methods of Procurement for Consulting Services
3. Offenses and Penalties
The Guide may be used as a reference in the:
evaluation of compliance with the requirements of applicable laws, rules and
regulations which is a component of the auditorial review provided in COA Circular No.
2009-001 dated February 12, 2009 on the subject: Restatement with Amendments of
COA Circular No. 87-278 and COA Memorandum 2005-027 re: submission of copy of
government contracts, purchase orders and their supporting documents to the
Commission on Audit,
Transactions.
The extent of audit that can be conducted based on the Guide will be limited to
the specific elements (areas/foci), procurements processes, audit objectives/subobjectives and audit activities mentioned in the various components of the Guide.
The audit criteria used in the Guide are those prevailing at the time of the
development of the Guide as follows:
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END NOTES
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It is suggested that the auditor be proactive in the sense that he/she should have
already conducted auditorial review on the audit sub-areas that will impact on the
succeeding sub-areas and/or audit sub-objectives where audit findings/conclusions of
non-compliance will result in audit decisions leading to the recommendations of
imposition of sanctions on liable/responsible persons and/or recommendations of
recovery of pecuniary losses on the part of the Procuring Entity.
The Guide is to be used according to the following sequence:
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Audit Activities
1. From the documents
(e.g. Office Orders,
Resolutions) relative to
procurements to be
audited evidencing the
creation of the BAC, using
the one (1) year term
from the creation of the
BAC as basis, determine if
a BAC existed for the
procurements at hand or
for future procurements to
be subject of audit.
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Audit Sub-objective
Audit Criteria
Audit Activities
b. In NGAs, constitutional
commissions or offices,
and branches of
government; and in
GOCCs, GFIs, and
SUCs, if the HOPE is
not the signatory,
Name and position of
the signatory vs. the
name and position of
the duly authorized
official per Office Order
or Board Resolution
designating him/her.
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Audit Sub-objective
Audit Criteria
Audit Activities
Were Regular
Members of the BAC
at least 5th ranking
officials of the
Procuring Entity?
Were Regular
Members of the BAC
of permanent
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Audit Sub-objective
Audit Criteria
September 2, 2009:
11.2.2. The BAC for NGAs,
Regular Members
a. Chairman, who is at least a third
ranking permanent official of the
procuring entity;
b. An officer, who is at least a fifth
ranking permanent official, with
knowledge, experience and/or
expertise in procurement who, to the
extent possible, represents the legal
or administrative area of the
procuring entity, provided that in the
case of bureaus, regional offices and
sub-regional/district offices, BAC
members shall be at least a third
ranking permanent personnel;
c. An officer, who is at least a fifth
ranking permanent official, with
knowledge, experience and/or
expertise in procurement who, to the
extent possible, represents the
finance area of the procuring entity,
provided that in the case of bureaus,
regional offices and subregional/district offices, BAC
members shall be at least a third
ranking permanent personnel.
5. For bureaus, regional offices
Audit Activities
status?
Were Regular
Members with
knowledge,
experience and/or
expertise in
procurement?
Was/Were there
Regular members
representing the
legal or
administrative area
of the Procuring
Entity?
Was/Were there
Regular members
representing the
financial area of the
Procuring Entity?
Were Regular
Members of the BAC
at least 3rd ranking
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Audit Sub-objective
Audit Criteria
expertise in procurement;
c. Finance area representative, at
least a 3rd ranking permanent
official of the procuring entity
with knowledge, experience
and/or expertise in
procurement
Regular Members
a. Chairman, who is at least a third
ranking permanent official of the
procuring entity;
b. An officer, who is at least a fifth
ranking permanent official, with
knowledge, experience and/or
expertise in procurement who, to the
extent possible, represents the legal
or administrative area of the
procuring entity, provided that in the
case of bureaus, regional offices and
sub-regional/district offices, BAC
members shall be at least a third
ranking permanent personnel;
c. An officer, who is at least a fifth
ranking permanent official, with
knowledge, experience and/or
expertise in procurement who, to the
extent possible, represents the
finance area of the procuring entity,
provided that in the case of bureaus,
regional offices and subregional/district offices, BAC
members shall be at least a third
ranking permanent personnel.
Audit Activities
officials of the
Procuring Entitys
bureau, regional
office, sub-regional
office, or district
office?
Were Regular
Members of the BAC
of permanent
status?
Were Regular
Members with
knowledge,
experience and/or
expertise in
procurement?
Was/Were there
Regular members
representing the
legal or
administrative area
of the Procuring
Entitys bureau,
regional office, subregional office, or
district office?
Was/Were there
Regular members
representing the
financial area of the
Procuring Entitys
bureau, regional
office, sub-regional
office, or district
office?
11.2.2.
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Audit Sub-objective
Audit Criteria
6. For National Government
Agencies/GOCCs/GFIs, to verify if
the Vice-Chairman was
Audit Activities
16. Verify from the Office
Order if from among the
Regular Members of the
BAC, the Vice-Chairman
was designated as such.
Is there a
representative in
the BAC from the
end user unit?
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Audit Criteria
a. One representative each from the
regular offices under the Office of
the Local Chief Executive such as,
but not limited to, the following:
Office of the Administrator, Budget
Office, Legal Office, Engineering
Office, General Services Offices;
and
b. A representative from the end user
unit.
Audit Activities
in the Appointment
documents/Assignment
Order.
a.
b.
The members shall elect among
themselves who shall act as Chairman and
Vice-Chairman. The Chairman of the BAC
shall be at least a third ranking permanent
official of the procuring entity. The
members of the BAC shall be personnel
occupying plantilla positions of the
procuring entity concerned.
a. the Chairman?
b. Vice Chairman?
a. at least a 3rd
ranking official of
the procuring
entity?
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Audit Criteria
Audit Activities
Were the
qualifications of
designated alternate
members of the BAC
the same as the
qualifications of
their principals?
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Audit Criteria
13. To verify if the HOPE and/or
approving authority is not the
Chairman or a member of the BAC
Audit Activities
26. Compare the name
and position of the Head
of the Procuring Entity
and/or the approving
authority (from
Appointment
documents/election
documents/relevant Office
Orders/ Assignment
Orders) with the names
and positions of the
Chairman and all
members of the BAC.
Did the
procurement
monitoring reports
prepared by the
BAC cover:
a. all procurement
activities specified in
the APP, whether
on-going and
completed?
b. from the holding
of the preprocurement
conference to the
issuance of the
notice of award and
the approval of the
contract?
c. standard and
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Audit Sub-objective
Audit Criteria
procurement monitoring report in the
form prescribed by the GPPB. The
procurement monitoring report shall cover
all procurement activities specified in the
APP, whether ongoing and completed,
from the holding of the pre-procurement
conference to the issuance of notice of
award and the approval of the contract,
including the standard and actual time for
each major procurement activity. The
procurement monitoring report shall be
approved and submitted by the Head of
the Procuring Entity to the GPPB in
printed and electronic format within
fourteen (14) calendar days after the end
of each semester.
Annex C
Audit Activities
3. Based on approved
Procurement Monitoring
Reports and
communications on
submissions (by the BAC
to the HOPE and by the
HOPE to the GPPB)
obtained from the BAC or
the Office of the HOPE,
verify if the Reports were
submitted by the BAC to
the HOPE for approval
and submission to the
GPPB in both printed and
electronic format within
14 calendar days after
the end of each semester.
4. Based on approved
Procurement Monitoring
Reports and
communications on
submissions by the HOPE
to the GPPB obtained from
the BAC or the Office of
the HOPE, verify if the
Reports were approved by
the HOPE and submitted
to the GPPB in both
printed and electronic
format within 14 calendar
days after the end of
each semester.
5. Identify instances of
noncompliance
discovered by the BAC
and/or by the HOPE in
the Procurement
Monitoring Report;
and, instances of
noncompliance noted
during the course of
the audit.
Were appropriate
actions taken by the
auditee in regard to
instances of noncompliance?
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Audit Criteria
Audit Activities
Look for
information/documents on
the actions taken by the
auditee in regard to such
non-compliances and
compare these with the
actions required by the
Revised IRR of RA 9184
and other relevant
regulations.
6. Request for
information from the
GPPB on the actions
they have taken on
instances of
noncompliance
involving the auditee,
including nonsubmission of the
Procurement
Monitoring Report.
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
1.To verify if the procuring
entitys Bids and Awards
Committee (BAC)
Secretariat was constituted
by the Head of the
Procuring Entity
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
14.1 The HOPE shall create a
Secretariat which will serve as the
main support unit of the BAC. An
existing organic office within the
procuring entity may also be
designated to serve as Secretariat.
However, to strengthen and
promote the professionalization of
the organizations procuring unit,
the HOPE may create procurement
units that may serve concurrently
as BAC Secretariat in accordance
with the guidelines issued by the
DBM
Yes
No
b. In NGAs, constitutional
commissions or offices,
and branches of
government; and in
GOCCs, GFIs, and SUCs,
if the HOPE is not the
signatory,
Name and position of the
signatory vs. the name
and position of the duly
authorized official per
Office Order or Board
Resolution designating
him/her.
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
2. To verify if the BAC
Secretariat was created:
a. as a Secretariat to serve
as the main support unit
of the BAC,
b. by designating an
existing organic office
within the procuring
entity,
c. or by creating a
procurement unit to
serve concurrently as
BAC Secretariat
in accordance with the
guidelines issued by the
DBM
Yes
No
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
permanent official of the
next lower rank;
b. at least a third ranking
permanent employee in
bureaus, regional offices
and sub-regional/ district
offices, or if not
available, a permanent
employee of the next
lower rank;
c. possesses integrity;
d. possesses procurement
proficiency
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
14.2 The head of the Secretariat in
central offices shall be at least a
fifth ranking permanent
employee or, if not available, a
permanent official of the next
lower rank; or shall be at least a
third ranking permanent
employee in bureaus, regional
offices and sub-regional/ district
offices, or if not available, a
permanent employee of the
next lower rank. In addition to
integrity, heads of Procuring
Entities shall consider
procurement proficiency as a
factor in designating the head of
the Secretariat and Procurement
Unit
Yes
No
official is not
available, was the
Head of the BAC
Secretariat at least
of the next lower
rank official in the
head office?
Was the Head of the
BAC Secretariat a
permanent official in
the head office?
4. In bureaus, regional
offices and sub-regional/
district offices of the
Procuring Entity:
Compare the rank and
status of the Head of the
BAC Secretariat per
Plantilla of the
organizational unit
concerned of the
Procuring Entity with the
required at least 3rd rank
(or if not available, a next
lower rank) and
permanent status
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Yes
No
Particulars
of the
Answer
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Audit Activities
OR
When the GAA,
corporate budget, or
appropriation ordinance,
as the case may be,
becomes final, obtain a
copy of the approved APP
from the BAC Secretariat.
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Audit Sub-objective
Audit Criteria
Audit Activities
Is the APP
approved by the
HOPE or secondranking official
designated by the
HOPE to act on his
behalf?
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
f. source of fund;
g. approved budget for
the contract.
d. procurement
method to be
adopted?
e. time schedule
for each
procurement
activity?
f. source of fund?
g. approved
budget for the
contract?
Is the proposed
APP supported by
PPMPs prepared by
the respective enduser units?
Is the approved
APP supported by
adjusted PPMPs
adjusted by enduser units to reflect
the final budget?
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
undertaken unless it is in
accordance with the approved
APP of the procuring entity.
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
and develop appropriate
audit recommendations
2. To verify the causes of
instances of noncompliance and develop
appropriate audit
recommendations
3. To communicate the
results of the audit with
the auditees
Management
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Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
discipline relevant to
the procurement at
hand?
c. One Observer from a
non-governmental
organization?
d. The organization is
registered with the SEC
or with the Cooperative
Development Authority
(CDA)?
e. The organizations
representative has
knowledge, experience
or expertise in
procurement or in the
subject matter of the
contract to be bid?
f. The organization
and/or its
representative has no
actual or potential
conflict of interest in the
contract to be bid?
g. Adopted other
relevant criteria
determined by the BAC?
3. Obtain and evaluate
documents from the BAC
Secretariat evidencing
implementation of the
policy (e.g. relevant
Minutes of the BACs
meetings, documentation
of the pool of relevant
professional organizations
and non-governmental
organizations, invitation
letters).
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Audit Sub-objective
Audit Criteria
Audit Activities
3. To communicate the
results of the audit with
the auditees Management
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To verify if the BAC implemented the mechanism and established the pool of
technical, financial, and/or legal experts from which they will identify/select members of
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
and develop
appropriate audit
recommendations
2. To verify the causes
of instances of noncompliance and
develop appropriate
audit
recommendations
3. To communicate the
results of the audit
with the auditees
Management
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Audit Activities
1. Request for the
customized bidding
documents for goods
from the BAC Secretariat.
Bidding Documents
(PBDs) for
Procurement of
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Audit Sub-objective
Audit Criteria
c. Eligibility Requirements
d. Instructions to Bidders,
including Scope of Bid,
documents comprising
the bid, criteria for
eligibility, bid evaluation
methodology/criteria in
accordance with the Act,
and post-qualification, as
well as the date, time and
place of the pre-bid
conference (where
applicable), submission of
bids and opening of bids
e. Technical Drawings and
Specifications
f. Form of Bid, Price Form,
and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract
Audit Activities
05-2009 dated 30
September 2009
the Answer
published by the
GPPB?
Audit Sub-objective
Audit Criteria
Audit Activities
f. Delivery Schedule
g. Form, amount, and validity
period of bid security
h. Form, amount, and validity of
performance security and
warranty
i. Form of Contract and General
and Special Conditions of
Contract.
Philippine Bidding Documents
Philippine Bidding
Documents (PBDs) for
Procurement of Goods,
3rd Edition, October 2009
approved by the GPPB
per GPPB Resolution No.
05-2009 dated 30
September 2009
Invitation to Bid
prescribed by Section
21.1 of the IRR of RA
9184 and the PBDs?
Instructions to Bidders
in the customized
bidding documents for
goods conform with
the standard form
prescribed by the
PBDs?
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Audit Sub-objective
Audit Criteria
the name of the contract to be
bid and a brief description of
the goods to be procured;
b. A general statement on the
criteria to be used by the
procuring entity for the
eligibility check, the
examination and evaluation of
bids, post-qualification, and
award;
c. The date, time and place of
the deadline for the
submission and receipt of the
eligibility requirements, the
pre-bid conference, if any, the
submission and receipt of bids,
and the opening of bids;
d. ABC to be bid;
e. The source of funding;
f. The period of availability of the
Bidding Documents, the place
where the Bidding Documents
may be secure, the website
where the Bidding Documents
may be downloaded, and,
where applicable, the price of
the Bidding Documents;
g. The contract duration or
delivery schedule;
h. The name, address, telephone
number, facsimile number, email and website addresses of
the concerned procuring
entity, as well as its
designated contact person;
and
i. Such other necessary
information deemed relevant
by the procuring entity.
Audit Activities
Instructions to Bidders
prescribed by the
PBDs?
General Conditions of
Contract in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
Did the contents of
the form of General
Conditions of Contract
in the customized
bidding documents for
goods conform with
the contents of the
General Conditions of
Contract form
prescribed by the
PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Special Conditions of
Contract in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
Special Conditions of
Contract in the
customized bidding
documents for goods
conform with the
contents of the Special
Conditions of Contract
prescribed by the
PBDs?
Schedule of
Requirements in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
Did the contents of
the form for the
Schedule of
Requirements in the
customized bidding
documents for goods
conform with the
contents of the
Schedule of
Requirements
prescribed by the
PBDs?
Did the form for the
Technical
Specifications in the
customized bidding
documents for goods
conform with the
standard form
prescribed by the
PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Technical
Specifications
prescribed by the
PBDs?
Did the Bid Form in
the customized
bidding documents for
goods conform with
the standard forms
prescribed by the
PBDs?
Did the contents of
the Bid Form in the
customized bidding
documents for goods
conform with the
contents of the Bid
Form prescribed by
the PBDs?
Did the Contract
Agreement Form in
the customized
bidding documents for
goods conform with
the standard form
prescribed by the
PBDs?
Contract Agreement
Form prescribed by
the PBDs?
Omnibus Sworn
Statement in the
customized bidding
documents for goods
conform with the
standard forms
prescribed by the
PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Omnibus Sworn
Statement in the
customized bidding
documents for goods
conform with the
contents of the
Omnibus Sworn
Statement prescribed
by the PBDs?
the customized
bidding documents for
goods conform with
the standard form
prescribed by the
PBDs?
customized bidding
documents for goods
conform with the
contents of the Bank
prescribed by the
PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
3. To communicate the
results of the audit with the
auditees Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
1. Request for the
customized bidding
documents for
infrastructure projects
from the BAC Secretariat
Procurement of
Infrastructure Projects,
Bidding Documents
(PBDs) for
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
a. Approved Budget for the
Contract,
b. Invitation to Bid
c. Eligibility Requirements
d. Instructions to Bidders,
including Scope of Bid,
documents comprising
the bid, criteria for
eligibility, bid evaluation
methodology/criteria in
accordance with the Act,
and post-qualification, as
well as the date, time and
place of the pre-bid
conference (where
applicable), submission of
bids and opening of bids
e. Technical Drawings and
Specifications
f. Form of Bid, Price Form,
and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract
Audit Activities
3rd edition, October 2009
the Answer
published by the
GPPB?
Audit Sub-objective
Audit Criteria
Audit Activities
Philippine Bidding
Documents (PBDs) for
Procurement of
Infrastructure Projects,
3rd edition, October 2009
published by the GPPB
Instructions to Bidders
in the customized
bidding documents for
infrastructure projects
conform with the
standard form
prescribed by the
GPPB?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
information, among others:
a. For the procurement of
Infrastructure projects, the
name and location of the
contract to be bid, the project
background and other relevant
information regarding the
proposed contract works,
including a brief description of
the type, size, major items,
and other important or
relevant features of the works;
b. A general statement on the
criteria to be used by the
procuring entity for the
eligibility check, the
examination and evaluation of
bids, post-qualification, and
award;
c. The date, time and place of
the deadline for the
submission and receipt of the
eligibility requirements, the
pre-bid conference, if any, the
submission and receipt of bids,
and the opening of bids;
d. ABC to be bid;
e. The source of funding;
f. The period of availability of the
Bidding Documents, the place
where the Bidding Documents
may be secure, the website
where the Bidding Documents
may be downloaded, and,
where applicable, the price of
the Bidding Documents;
g. The contract duration or
delivery schedule;
h. The name, address, telephone
number, facsimile number, email and website addresses of
the concerned procuring
entity, as well as its
designated contact person;
and
i. Such other necessary
information deemed relevant
by the procuring entity.
Audit Activities
Instructions to Bidders
in the customized
bidding documents for
infrastructure projects
conform with the
contents of the
Instructions to Bidders
prescribed by the
PBDs?
General Conditions of
Contract in the
customized bidding
documents for
infrastructure projects
conform with the
standard form
prescribed by the
PBDs?
General Conditions of
Contract in the
customized bidding
documents for
infrastructure projects
conform with the
contents of the
General Conditions of
Contract prescribed by
the PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Special Conditions of
Contract in the
customized bidding
documents for
infrastructure projects
conform with the
standard form
prescribed by the
PBDs?
Special Conditions of
Contract in the
customized bidding
documents for
infrastructure projects
conform with the
contents of the form
for the Special
Conditions of Contract
prescribed by the
PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Omnibus Sworn
Statement in the
customized bidding
documents for
infrastructure projects
conform with the
standard form
prescribed by the
PBDs?
Did the contents of
the form for the
Omnibus Sworn
Statement in the
customized bidding
documents for
infrastructure projects
conform with the
contents of the
Omnibus Sworn
Statement prescribed
by the PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Notes on Specifications
in Section VI. Specifications
of the Philippine Bidding
Documents (PBDs) for
Procurement of
Infrastructure Projects, 3rd
edition, October 2009
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Audit Activities
Prepare the appropriate
audit/ validation
document reflecting the
results of the
audit/validation and
transmit to Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
1. Request for the
customized bidding
documents for consulting
services from the BAC
Secretariat.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2.To verify if the set of
customized bidding
documents for consulting
services are complete,
i.e., include the
following:
a. Approved Budget for
the Contract,
b. Request for Expression
of Interest,
c. Eligibility
Requirements
d. Instructions to
Bidders, including
Scope of Bid,
documents comprising
the bid, criteria for
eligibility, bid
evaluation
methodology/criteria in
accordance with the
Act, and postqualification, as well as
the date, time and
place of the pre-bid
conference (where
applicable), submission
of bids and opening of
bids
e. Technical Drawings
and Specifications
f. Form of Bid, Price
Form, and list of goods
g. Delivery Schedule
h. Form, amount, and
validity period of bid
security
i. Form, amount, and
validity of performance
security and warranty
j. Form of Contract and
General and Special
Conditions of Contract
Audit Activities
2. Compare the set of
customized bidding
documents with the
Philippine Bidding
Documents (PBDs) for
Procurement of
Consulting Services, 3rd
edition, October 2009
published by the GPPB
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Philippine Bidding
Documents (PBDs) for
Procurement of Consulting
Services, 3rd edition,
October 2009 published by
the GPPB published by the
GPPB
Bidding Documents
(PBDs) for Procurement
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
of Consulting Services,
3rd edition, October 2009
published by the GPPB
Audit Activities
Procurement of
Consulting Services, 3rd
edition, October 2009
published by the GPPB
Eligibility Documents
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Instructions to Bidders in
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
General Conditions of
Contract in the customized
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Special Conditions of
Contract in the customized
Eligibility Documents
Submission Form in the
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
Did the contents of the
Eligibility Documents
Submission Form in the
customized bidding
documents for consulting
services conform with the
contents of the Eligibility
Documents Submission
Form prescribed by the
PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Technical Proposal
Submission Form in the
customized bidding
documents for consulting
services conform with the
contents of the Technical
Consultants Reference in
Comments and
Suggestions of Consultant
on the Terms of Reference
and on Data, Services, and
Facilities to be Provided by
the Procuring in the
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Suggestions of Consultant
on the Terms of Reference
and on Data, Services, and
Facilities to be Provided by
the Procuring in the
customized bidding
documents for consulting
services conform with the
contents of the Comments
and Suggestions of
Consultant on the Terms
of Reference and on Data,
Services, and Facilities to
be Provided by the
Procuring form
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
customized bidding
documents for consulting
services conform with the
contents of the Format of
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
Professional Personnel
Financial Proposal
Submission in the
customized bidding
documents for consulting
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
Summary of Costs
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Breakdown of
Remuneration per Activity
in the customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
Miscellaneous Expenses in
the customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
Did the contents of the
Form of Contract
Agreement in the
customized bidding
documents for consulting
services conform with the
contents of the Form of
Contract Agreement
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Breakdown of Agreed
Fixed Rate in the
customized bidding
documents for consulting
services conform with the
standard form prescribed
by the PBDs?
a.
b.
c.
d.
Background,
Objectives,
Scope of the Services,
Training (when
appropriate),
e. Reports and Time
Schedule,
f. Data. Local Services,
Personnel, and
Facilities to be
provided by the
Procuring Entity
per Section VI. Terms of
Reference of the Philippine
Bidding Documents (PBDs)
for Procurement of
Consulting Services, 3rd
edition, October 2009
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
b. validity of any
payment to be made
on the basis of the
contract;
c. etc.
and develop appropriate
audit recommendations
2. To verify the causes of
instances of noncompliance and develop
appropriate audit
recommendations
3. To communicate the
results of the audit with
the auditees
Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF GOODS
I. PREPARATORY ACTIVITY:
BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents followed the standard forms and manuals prescribed
by the Government Procurement Policy Board (GPPB)
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. The procuring entitys Customized Bidding Documents for Goods;
2. Bidding Documents for the specific procurement.
Audit Sub-objective
Audit Criteria
1. To verify if the Bidding
Documents for the specific
procurement include the
information and are
according to the forms
included in the Customized
Bidding Documents
approved by the GPPB or
the Philippine Bidding
Documents for the
Procurement of Goods, 3rd
Edition (October 2009)
issued by the GPPB and
Section 17 of the
Implementing Rules and
Regulations of RA 9184 as
amended on September 2,
2009:
a. Approved Budget for
the Contract;
b. Invitation to Bid;
c. Eligibility
Requirements;
d. Instruction to Bidders,
including scope of bid,
documents comprising
the bid, criteria for
eligibility, bid
Audit Activities
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
e.
f.
g.
h.
i.
j.
k.
evaluation
methodology/criteria in
accordance with the
Act, and postqualification, as well as
the date, time and
place of the pre-bid
conference (where
applicable), submission
of bids and opening of
bids;
Scope of work, where
applicable;
Plans/Drawings and
Technical
Specifications;
Form of Bid, Price Form,
and List of Goods;
Delivery Time or
Completion Schedule;
Form, Amount, and
Validity Period of Bid
Security;
Form, Amount, and
Validity of Performance
Security and Warranty;
and
Form of Contract and
General and Special
Conditions of Contract.
Audit Activities
of the
Answer
Procurement of Goods
bid conference?
Plans/Drawings and
Technical
Specifications?
h. Delivery Time or
Completion
Schedule?
i.
j.
k.
Form of Contract
and General and
Special Conditions
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
(where applicable),
submission of bids and
opening of bids;
e. Scope of work, where
applicable;
f. Plans/Drawings and
Technical Specifications;
g. Form of Bid, Price Form, and
List of Goods;
h. Delivery Time or Completion
Schedule;
i. Form, Amount, and Validity
Period of Bid Security;
j. Form, Amount, and Validity of
Performance Security and
Warranty; and
k. Form of Contract and General
and Special Conditions of
Contract.
of Contract?
Were the Bidding
Documents in the
required form:
a. Invitation to Bid?
b. Instructions to
Bidders?
c. Bid Data Sheet?
d. General Condition
of the Contract?
e. Special Condition of
Contract?
f.
Schedule of
Requirements?
g. Technical
Specifications?
h. Bidding Forms?
appropriate audit
recommendations.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To communicate the
results of the audit with
the auditees Management
COA Circular No. 2009-006
Audit Activities
Prepare the appropriate audit/
validation document reflecting
the results of the
audit/validation and transmit
to Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
Audit Question
Procurement Conference
Yes
No
Particulars of
the Answer
Did the
attendees to the
Conference
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
the Secretariat, the unit or
officials, including consultants
hired by the procuring entity,
who prepared the Bidding
Documents and the draft
Invitation to Bid
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. The pre-procurement
conference shall be attended by the
BAC, the Secretariat, the unit or
officials, including consultants hired
by the procuring entity, who
prepared the Bidding Documents
and the draft Invitation to Bid, for
each procurement.
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
include the:
a. BAC?
b. Secretariat?
c. unit or
officials who
prepared the
Bidding
Documents
and the draft
Invitation to
Bid?
d. consultants
hired by the
procuring
entity, who
prepared the
Bidding
Documents
and the draft
Invitation to
Bid?
Was there a
quorum of the
BAC?
Procurement Conference,
Procurement Conference
Did the
participants led
by the BAC
discuss and
confirm the:
a. Description of
the scope of
the contract?
b. ABC?
c. Contract
duration?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
that the procurement is in
accordance with the project
procurement management
plan (PPMP) and annual
procurement plan (APP);
c. Discussed relevant
information and confirmed the
availability of appropriations
and programmed budget for
contract;
d. Discussed relevant
information and confirmed the
completeness of the Bidding
Documents and their
adherence to relevant general
procurement guidelines;
e. Reviewed, modified and
agreed on the criteria for
eligibility screening,
evaluation, and postqualification;
f. Reviewed and adopted the
procurement schedule,
including deadlines and
timeframes, for the different
activities; and
g. Reiterated and
emphasized the importance of
confidentiality and the
applicable sanctions and
penalties, as well as agreed on
measures to ensure
compliance with the foregoing.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. During the conference, the
Audit Activities
Audit Question
Procurement Conference
Procurement Conference
Procurement Conference
Yes
No
Particulars of
the Answer
Did the
participants led
by the BAC
discuss and
confirm that the:
a. procurement
is in
accordance
with the PPMP
and APP?
b. appropriations
and
programmed
budget for the
contract are
available?
Did the
participants led
by the BAC
discuss and
confirm the
following:
a. completeness
of
the Bidding
Documents?
b. adherence to
the PBDs/
customized
Bidding
Documents?
Did the
participants led
by the BAC
discuss and
confirm the
criteria for:
a. Eligibility
screening?
b. Bid
evaluation?
c. Postqualification?
Did the
participants led
by the BAC
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
d)
e)
f)
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
discuss and
confirm the:
a. adoption of
the
procurement
schedule
including
deadlines and
timeframes
for the
different
activities?
b. agreement on
the nocontact rule?
Audit Sub-objective
Audit Criteria
procuring entities, can proceed
with the procurement activities
prior to issuance of the notice of
award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a MultiYear Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the MYOA
issued by DBM for the said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered into
unless the proper accounting
official of the procuring entity
shall have certified as to the
availability of funds and the
allotment to which the
expenditure or obligation may be
properly charged.
Audit Activities
Yes
No
Particulars of
the Answer
Definition:
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
that the agency must prepare
to reflect the entire
procurement activity (i.e.,
goods, services, civil works to
be procured) that it plans to
undertake within the calendar
year. This document contains
the following information:
3.2.1. Name of the procurement
program/project;
3.2.2. Project management office
or end-user unit;
3.2.3. General description of the
procurement;
3.2.4. Procurement method to be
adopted;
3.2.5. Time schedule for each
procurement activity;
3.2.6. Source of fund; and
3.2.7. Approved Budget for the
Contract.
Audit Activities
Yes
No
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
appropriate audit
recommendations.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
the Answer
Invitation to Bid in
a newspaper of
general nationwide
circulation which
has been regularly
published for the
last 2 years before
the date of issue of
the advertisement?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To verify if the BAC posted
the Invitation to Bid
continuously in the PhilGEPS
website, the website of the
procuring entity concerned,
if available, and the website
prescribed by the foreign
government/foreign or
international financing
institution, if applicable, for
7 calendar days starting on
the date of advertisement
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
21.2.1. Except as otherwise
provided in Sections 21.2.2 and
54.2 of this IRR and for the
procurement of common-use
goods and supplies, the Invitation
to Bid shall be:
a.
Audit Activities
the Answer
1. PhilGEPS website
for 7 calendar
days starting on
the date of
advertisement?
Invitation to Bid
continuously in the:
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
3. website
prescribed by
the foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
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Audit Criteria
Audit Activities
the Answer
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.
appropriate audit
recommendations.
3. To communicate the
results of the audit with the
auditees Management
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Audit Activities
of the
Answer
1. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
Invitation to Bid
continuously in the:
1. PhilGEPS website
for 7 calendar
days starting on
the date of
advertisement?
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
3. website prescribed
by the foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
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Audit Activities
21.2.1
a.
b
c. Posted continuously at any
conspicuous place reserved for
the purpose in the premises of
the procuring entity for 7
calendar days, as certified by
the head of the BAC Secretariat
of the procuring entity
concerned.
4. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
5. Conduct ocular
inspection on the first day of
posting.
6. Repeat the ocular
inspections (may be at
random) during the 7-day
period to verify the postings.
appropriate audit
recommendations.
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Audit Activities
of the
Answer
3. To communicate the
results of the audit with the
auditees Management
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Audit Activities
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Audit Sub-objective
Audit Criteria
2. To verify if the BAC posted
the Bidding Documents at
the website of the procuring
entity and at the PhilGEPS
website from the time that
the Invitation to Bid was
advertised up to the deadline
for the submission and
receipt of bids
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
17.5 The procuring entity shall
also post the Bidding Documents
at its website and at the PhilGEPS
website from the time that the
Invitation to Bid is advertised.
Prospective Bidders may download
the Bidding Documents from any
of the said websites; Provided
that, bidders shall pay the fee for
the Bidding Documents upon
submission of their Bids.
Audit Activities
the Answer
2. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting of Bidding
Documents.
a. PhilGEPS
website starting
on the first day
of
advertisement?
b. website of the
procuring entity
concerned, if
available,
starting on the
first day of
advertisement?
appropriate audit
recommendations.
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
3. To communicate the
results of the audit with the
auditees Management
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Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
Minutes of Pre-Bid
Conference .
Was there a
quorum of the
BAC?
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Audit Criteria
4. To verify if during the
Conference the BAC
performed the following
tasks and attained the
related objectives:
a. Presented the eligibility
requirements as well as
the technical and
financial components of
the contract to be bid,
the evaluation
procedures, evaluation
criteria, and possible
causes of failure of the
bidding.
b. Discussed the
requirements in the
ITB, replied to the
bidders queries about
the requirements,
specifications and other
conditions of the
project, the procedures
on the bid evaluation of
all bidders and postqualification evaluation
of the lowest calculated
bidder. Emphasized the
warranty requirement
of the project and the
different offenses and
penalties provided for
in IRR of RA 9184.
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
22.3. The pre-bid conference
Audit Activities
6. From the Minutes of PreBid Conference look for
information on the
presentation/discussion,
issues/questions raised by
prospective bidders, and
clarifications made thereon
relative to the following:
a. eligibility requirements,
b. technical component of
the contract to be bid,
c. financial component of
the contract to be bid,
d. bid evaluation criteria,
e. bid evaluation
procedures,
f. post-qualification criteria,
g. post-qualification
procedures,
h. possible causes of failure
of the bidding,
i. requirements in the
Instructions to Bidders,
j. specifications,
k. other conditions of the
project,
l. warranty requirement of
the project,
m. different offenses and
penalties provided for in
IRR of RA 9184
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Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
chamber-member of the
Philippine Chamber of
Commerce and Industry,
and a non-government
organization (NGO) from
the procuring entitys Pool
of Observers;
b. that have:
b.1. knowledge,
experience or expertise
in procurement or in the
subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria
determined by the BAC;
a. one
representing
the COA?
b. One
representing
the specific
relevant
chambermember of the
Philippine
Chamber of
Commerce and
Industry?
c. One
representing a
nongovernment
organization?
d. With
knowledge,
experience or
expertise in
procurement or
in the subject
matter of the
contract to be
bid?
e. With no actual
or potential
conflict of
interest in the
contract to be
bid?
f. Conformed with
other relevant
criteria
determined by
the BAC?
10. From certified copies of
the invitations to the
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iii) and
b) The other observer shall come
from a non-government
organization (NGO).
Audit Activities
appropriate audit
recommendations.
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Audit Activities
3. To communicate the
results of the audit with
the auditees Management
COA Circular No. 2009-006
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22.4. Any
statement made at the pre-bid
conference shall not modify the terms
of the Bidding Documents, unless
such statement is specifically
identified in writing as an amendment
thereto and issued as a
Supplemental/ Bid Bulletin.
2. To verify if:
a. requests for
clarification(s) on any
part of the Bidding
Documents or for an
interpretation were in
writing and submitted to
the BAC of the procuring
entity at least ten (10)
calendar days before the
Audit Activities
of the
Answer
3. Obtain copy/ies of
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deadline set for the
submission and receipt of
bids;
b. the Supplemental/ Bid
Bulletin was duly signed
by the BAC Chairman;
c. the Supplemental/ Bid
Bulletin was issued at
least seven (7) calendar
days before the deadline
for the submission and
receipt of bid.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
22.5.1 Requests for clarification(s)
on any part of the Bidding
Documents or for an interpretation
must be in writing and submitted
to the BAC of the procuring entity
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if:
a. Supplemental/Bid Bulletins
initiated by the procuring
entity for purposes of
clarifying or modifying any
provision of the Bidding
Documents were issued at
least seven (7) calendar
days before the deadline
for the submission and
receipt of bids;
b. Modifications to the
Bidding Documents were
identified as amendments.
Audit Activities
of the
Answer
Were Supplemental/
Bid Bulletins signed
by the BAC
Chairman?
Were Supplemental/
Bid Bulletins issued at
least seven (7)
calendar days before
the deadline for the
submission and
receipt of bid?
Were Supplemental/
Bid Bulletins initiated
by the procuring
entity for purposes of
clarifying or
modifying any
provision of the
Bidding Documents
were issued at least
seven (7) calendar
days before the
deadline for the
submission and
receipt of bids?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Criteria
Audit Activities
of the
Answer
Were modifications to
the Bidding
Documents were
identified as
amendments?
8. Go through the
Supplemental/Bid Bulletins
and check for the signature
of the BAC Chairman.
Were
Supplemental/Bid
Bulletins duly signed
by the BAC
Chairman?
Supplemental/Bid Bulletins
as posted on the PhilGEPS
and at their website.
Supplemental/Bid
Bulletins issued:
a. on the PhilGEPS
website?
AND
b. the website of the
procuring entity
concerned?
Supplemental/Bid Bulletins.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Activities
of the
Answer
issuance?
Supplemental/Bid
Bulletins informed
appropriate audit
recommendations.
3. To communicate the
results of the audit with the
auditees Management
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Audit Activities
of the
Answer
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Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
25.1. Bidders shall submit their
bids through their duly authorized
representative using the forms
specified in the Bidding
Documents in two (2) separate
sealed bid envelopes, and which
shall be submitted simultaneously.
The first shall contain the
technical component of the bid,
including the eligibility
requirements under Section 23.1
of this IRR, and the second shall
contain the financial component of
the bid.
2. To verify if the
BAC validated that in
modifying a bid:
a. it was done before the
deadline for the
submission and receipt of
bids,
b. the original bid was not
retrieved but another bid
equally sealed, properly
identified, was submitted
and linked to the original
bid and marked as a
modification, thereof,
and stamped received by
the BAC
Audit Activities
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
determined compliance of
each bidder with the
documents required to be
submitted in the first
envelope by checking the
submitted documents of each
bidder against a checklist of
required documents to
ascertain if they are all
present, using a
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders
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Audit Activities
a. Registration
c. Mayors permit
b. In a Joint Venture,
each partners
Registration
certificate from SEC,
Department of Trade
and Industry (DTI)
for sole
proprietorship, or
CDA for
cooperatives, or any
proof of such
registration as stated
in the Bidding
Documents?
d. In a Joint Venture,
each partners
Mayors permit
issued by the city or
municipality where
the principal place of
business of the
prospective bidder is
located?
e. Statement of the
prospective bidder of
all its ongoing and
completed
government and
private contracts,
including contracts
awarded but not yet
started, if any,
whether similar or
not similar in nature
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Criteria
(2) Each of the documents
submitted in satisfaction of the
bidding requirements is an
authentic copy of the original,
complete, and all statements
and information provided
therein are true and correct;
(3) It is authorizing the Head of
the Procuring Entity or his duly
authorized representative/s to
verify all the documents
submitted;
(4) The signatory is the duly
authorized representative of the
prospective bidder, and granted
full power and authority to do,
execute and perform any and all
acts necessary and/or to
represent the prospective bidder
in the bidding, with the duly
notarized Secretarys Certificate
attesting to such fact, if the
prospective bidder is a
corporation, partnership,
cooperative, or joint venture;
(5) It complies with the disclosure
provision under Section 47 of
the Act in relation to other
provisions of R.A. 3019;
(6) It complies with the
responsibilities of a prospective
or eligible bidder provided in the
PBDs; and
(7) It complies with existing labor
laws and standards, in the case
of procurement of services.
23.1. For purposes of determining
Audit Activities
and complexity to
the contract to be
bid, within the
relevant period as
provided in the
Bidding Documents?
e.1. In a Joint
Venture, any
partners?
financial statements,
showing, among
others, the
prospective bidders
total and current
assets and liabilities,
stamped received
by the BIR or its duly
accredited and
authorized
institutions, for the
preceding calendar
year which should
not be earlier than
two (2) years from
the date of bid
submission?
f.1. In a Joint
Venture, any
partners?
g. The bidders
---------------------------------------------------------------------------------------------------------Prepared by:
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the prospective bidder is
located.
Technical Documents
iii) Statement of the prospective
bidder of all its ongoing and
completed government and
private contracts, including
contracts awarded but not yet
started, if any, whether similar
or not similar in nature and
complexity to the contract to be
bid, within the relevant period
as provided in the Bidding
Documents. The statement shall
include all information required
in the PBDs prescribed by the
GPPB.
iv)
Financial Documents
v) The prospective bidders
audited financial statements,
showing, among others, the
prospective bidders total and
current assets and liabilities,
stamped received by the BIR
or its duly accredited and
authorized institutions, for the
preceding calendar year which
should not be earlier than two
(2) years from the date of bid
submission.
vi) The prospective bidders
computation for its Net Financial
Contracting Capacity (NFCC) or
a commitment from a Universal
or Commercial Bank to extend a
credit line in favor of the
prospective bidder if awarded
the contract to be bid (CLC).
b) Class B Document
Valid joint venture Agreement
(JVA), in case the joint venture is
already in existence. In the
absence of a JVA, duly notarized
statements from all the potential
joint venture partners stating that
they will enter into and abide by
the provisions of the JVA in the
instance that the bid is successful
shall be
included in the bid. Failure to
enter into a joint venture in the
event of a
contract award shall be ground for
the forfeiture of the bid security.
Audit Activities
Agreement (JVA), in
case the joint
venture is already in
existence.
In the absence of
a JVA, duly notarized
statements from all
the potential joint
venture partners
stating that they will
enter into and abide
by the provisions of
the JVA in the
instance that the bid
is successful?
prescribed:
form?
amount?
validity period?
j. Technical
specifications, which
may include:
(1) production/
delivery
schedule?
(2) manpower
requirements?
(3) after-sales
service/parts, if
applicable?
k. Sworn statement by
the prospective
bidder or its duly
authorized
representative in the
form prescribed by
the GPPB as to the
following:
(1) It is not
blacklisted or
barred from
bidding by the
GOP or any of its
agencies, offices,
corporations, or
LGUs, including
foreign
government/
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Audit Criteria
Each partner of the joint venture
shall submit the legal eligibility
documents. The submission of
technical and financial eligibility
documents by any of the joint
venture partners constitutes
compliance.
27.1. All bids shall be
Amount of Bid
Security (Equal
to Percentage of
the ABC)
Two percent
(2%)
Five percent
(5%)
Audit Activities
foreign or
international
financing
institution whose
blacklisting rules
have been
recognized by the
GPPB?
(2) Each of the
documents
submitted in
satisfaction of the
bidding
requirements is an
authentic copy of
the original,
complete, and all
statements and
information
provided therein
are true and
correct?
(3) It is authorizing
the Head of the
Procuring Entity or
his duly authorized
representative/s to
verify all the
documents
submitted?
(4) The signatory is
the duly
authorized
representative of
the prospective
bidder, and
granted full power
and authority to
do, execute and
perform any and
all acts necessary
and/or to
represent the
prospective bidder
in the bidding,
with the duly
notarized
Secretarys
Certificate
attesting to such
fact, if the
prospective bidder
is a corporation,
partnership,
cooperative, or
joint venture?
(5) It complies with
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d) Any combination of
the foregoing.
Proportionate to
share of form
with respect to
total amount of
security
Audit Activities
the disclosure
provision under
Section 47 of the
Act in relation to
other provisions of
R.A. 3019?
(6) It complies with
the responsibilities
of a prospective or
eligible bidder
provided in the
PBDs?
(7) It complies with
existing labor laws
and standards, in
the case of
procurement of
services?
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Criteria
Audit Activities
----
of the
Answer
a.2 bill of
quantities?
a.3 Price
Schedules?
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Criteria
Audit Activities
of the
Answer
notification?
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Audit Sub-objective
Audit Criteria
in the subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria determined
by the BAC;
Audit Activities
of the
Answer
be bid; and
conformed with other relevant
criteria determined by the
BAC.
c. One representing a
non-government
organization?
d. With knowledge,
experience or
expertise in
procurement or in
the subject matter of
the contract to be
bid?
e. With no actual or
potential conflict of
interest in the
contract to be bid?
f. Conformed with
other relevant
criteria determined
by the BAC?
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Audit Criteria
Audit Activities
following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity, copy
furnished the BAC Chairman. The
report shall assess the extent of
the BACs compliance with the
provisions of this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of the
Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract to
be bid.
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
audit recommendations.
Audit Guide.
Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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To verify if the BAC followed the required timeline in the conduct of bid evaluation.
Audit Activities
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Audit Sub-objective
Audit Criteria
2. To verify if the BAC
considered completeness
and arithmetical
corrections of the
financial component of
the bids in the detailed
evaluation
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
32.2.1 The BAC shall
Audit Activities
the Answer
component of the
bids :
For Goods offered
from within the
Philippines:
a. Item?
b. Description?
c. Country of Origin?
d. Quantity?
e. Unit Price EXW per
item?
f. Cost of local labor,
raw material, and
component?
g. Total price EXW
per item?
h. Unit prices per
item final
destination and
unit price of other
incidental
services?
i. Sales and other
taxes payable per
item if Contract is
awarded?
j. Total price
delivered Final
Destination?
For Goods Offered
from Abroad:
a.
Item?
b.
Description?
c.
Country of
Origin?
d.
Quantity?
e.
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Audit Criteria
Audit Activities
the Answer
(specified port)
or CIF named
place (specified
border point or
place of
destination)?
f.
g.
Unit price
Delivered Duty
Unpaid (DDU)?
h.
Unit price
Delivered Duty
Paid (DDP)?
i.
Total Price
Delivered DDP?
a. computational
errors?
b. omissions?
c. other bid
modification, if
allowed in the
Bidding
Documents?
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Audit Criteria
3. To verify if the BAC
disqualified bidders whose
bids as calculated were
higher than the ABC
Implementing Rules and
Regulations (IRR) of RA 9184, as
amended on September 2, 2009:
31.1 The ABC shall be the
Audit Activities
the Answer
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Audit Criteria
Audit Activities
the Answer
j. Names and
signatures of the
Chairman and
members of the
BAC?
Abstract of Bids as
Calculated as the Lowest
of Bids as Calculated
as the Lowest
Calculated Bid (LCB)?
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Audit Criteria
Audit Activities
the Answer
a. one representing
the COA?
b. One representing
the specific
relevant chambermember of the
Philippine
Chamber of
Commerce and
Industry?
c. One representing
a non-government
organization?
d. With knowledge,
experience or
expertise in
procurement or in
the subject matter
of the contract to
be bid?
e. With no actual or
potential conflict
of interest in the
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
13. Observers
---------------------------------------------------------------------------------------------------------Prepared by:
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the Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
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Audit Sub-objective
Audit Criteria
c. etc.
and develop appropriate
audit recommendations
Audit Activities
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
To verify if the BAC followed the required timeline in the conduct of post-qualification
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify whether the
bidder whose bid was
declared by the BAC as LCB
submitted the following
documents within 3 calendar
days from its receipt of the
notice:
a) Tax clearance;
b) Latest income and
business tax returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses
and permits required by
law and stated in the
Bidding Documents.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.2. Within three (3) calendar
days from receipt by the bidder of
the notice from the BAC that the
bidder has the Lowest Calculated
Bid or Highest Rated Bid, the
bidder shall submit the following
documentary requirements to the
BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding
Documents.
Audit Activities
1. From the records of
the BAC, check the date
when the bidder with the
LCB submitted the: a) Tax
clearance, b) Latest
income and business tax
returns, c) Certificate of
PhilGEPS Registration;
and d) Other appropriate
licenses and permits
required by law and
stated in the Bidding
Documents and compare
this with the date of
receipt of the notice that
the bidder has the LCB.
2. Ask for copies of the
documents submitted
from the BAC Secretariat
and compare them with
the requirements.
3. If based on the
validation conducted in 1.
and 2. above, the
submissions were found
to be incomplete and/or
not on time, obtain a copy
of the BAC Resolution
disqualifying the bidder
and forfeiting its bid
security.
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.2.Within three (3) calendar
days from receipt by the bidder of
the notice from the BAC that the
bidder has the Lowest Calculated Bid
or Highest Rated Bid, the bidder
shall submit the following
documentary requirements to the
BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding Documents.
Failure to submit the above
requirements on time or a finding
against the veracity of such shall be
ground for the forfeiture of the bid
security and disqualify the bidder for
award.
Audit Activities
information thereon and
check the results of such
validation.
a) DTI Registration
Certificate, duly supported
with:
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Audit Sub-objective
Audit Criteria
c. a Corporation duly
organized under the laws of
the Philippines, and of which
at least sixty percent (60%)
of the outstanding capital
stock belongs to citizens of
the Philippines, or
d. Cooperatives duly
organized under the laws of
the Philippines, and of which
at least sixty percent (60%)
belongs to citizens of the
Philippines, or
e. Joint Venture - that Filipino
ownership or interest of the
joint venture concerned shall
be at least sixty percent (60%).
Audit Activities
(based on the
application for
registration filed by
the bidder with the
DTI),
if the bidder is a sole
proprietorship;
b. SEC registration and of
the 60% Filipino
ownership, duly
supported with:
the SEC-certified
copy of the
Registration
Certificate,
if the bidder is a
partnership;
c. SEC registration and of
the 60% Filipino
ownership, duly
supported with:
SEC-certified copy
of the Registration
Certificate and
SEC-certified copy
of the Articles of
Incorporation
if the bidder is a
corporation.
d. CDA registration and
of the 60% Filipino
ownership, duly
supported with:
CDA-certified copy
of the Registration
Certificate and
CDA certificate
that at least sixty
percent (60%)
belongs to citizens
of the Philippines
if the bidder is a
cooperative
e. Joint Venture individual
partners:
DTI, SEC, or CDA
registrations and
of the 60%
Filipino ownership
duly supported with
the DTI-, SEC-, or
CDA-certified
Certificate, as the case
may be and DTI-, SEC-
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
(60%) of the interest belongs to
citizens of the Philippines;
c) Corporations duly organized
under the laws of the Philippines,
and of which at least sixty percent
(60%) of the outstanding capital
stock belongs to citizens of the
Philippines;
d) Cooperatives duly organized
under the laws of the Philippines,
and of which at least sixty percent
(60%) belongs to citizens of the
Philippines; or
e) Persons/ entities forming
themselves into a joint venture,
i.e., a group of two (2) or more
persons/entities that intend to be
jointly and severally responsible or
liable for a particular contract:
Provided, however, That Filipino
ownership or interest of the joint
venture concerned shall be at
least sixty percent (60%). For this
purpose, Filipino ownership or
interest shall be based on the
contributions of each of the
members of the joint venture as
specified in their JVA.
Audit Activities
, or CDA-certified
documents evidencing
ownership.
7. Compare the
data/documents in 6.
above with the documents
submitted by the bidder
to validate authenticity
and extent of Filipino
ownership.
The LGU-certified
copy of the Mayors
permit, and
9. Compare the
data/documents in 8.
above with the documents
submitted by the bidder
to validate authenticity
and issuing entity is the
city/municipality where
the bidders principal
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Audit Sub-objective
Audit Criteria
Audit Activities
place of business is
located.
a. inspection reports
on the goods
offered;
b. test results
a. specifications of
the item?
b. maintenance
and/or after-sales
capabilities?
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Audit Sub-objective
Audit Criteria
Audit Activities
projects, or consulting
services offered with the
requirements specified in the
Bidding Documents, including,
where applicable:
i)
ii)
iii) Verification and/or
inspection and testing of the
goods/product, after sales
and/or maintenance
capabilities, in applicable
cases, for the procurement of
goods;
a. HOPE?
b. members of the
BAC?
c. members of the
TWG?
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Audit Sub-objective
Audit Criteria
b. members of the BAC,
c. members of the TWG,
d. members of the BAC
Secretariat,
e. head of the Project
Management Office (PMO),
f. head of the end-user unit,
g. project consultants
Section 47. Disclosure of Relations
Audit Activities
mentioned in Sec. 47,
Amended IRR of RA
9184;
b. all the officers and
members of the bidder
partnership are not
related to the persons
mentioned in Sec. 47,
Amended IRR of RA
9184;
c. all the officers,
directors, and
controlling
stockholders of the
bidder corporation are
not related to the
persons mentioned in
Sec. 47, Amended IRR
of RA 9184.
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Audit Sub-objective
Audit Criteria
Audit Activities
d. validity period?
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
disqualification indicated
thereon.
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Audit Sub-objective
Audit Criteria
34.6. the BAC shall initiate and
complete the same postqualification process on the bidder
with the second Lowest Calculated
Bid.
Audit Activities
statements made
and documents
submitted by the
LCB and the
second rank
bidder?
NOTE:
For each postdisqualification of the
next-rank bidder, the
BAC is to repeat the
post-qualification
process until the LCRB
is declared for award.
If Yes, proceed
to the Audit Subobjective to
verify if the
BAC declared
the postqualified
second-rank
bidder as the
LCRB after a
request for
reconsideration
of the LCB
(first-rank,
second-rank,
or next-inrank, a the
case may be)
has been
denied
If No, proceed to
the Audit SubObjectives in
case of Postdisqualification
of the bidder
with the LCB.
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Audit Sub-objective
Audit Criteria
(first-rank) has been denied
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.6. Immediately after the BAC
has notified the first bidder of its
post-disqualification, and
notwithstanding any pending
request for reconsideration
thereof, the BAC shall initiate and
complete the same postqualification process on the bidder
with the second Lowest Calculated
Bid. If the second bidder passes
the post-qualification, and
provided that the request for
reconsideration of the first bidder
has been denied, the second
bidder shall be post-qualified as
the bidder with the Lowest
Calculated Responsive Bid.
Audit Activities
request for
reconsideration of the LCB
(first-rank) has been
denied.
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Audit Sub-objective
Audit Criteria
Chamber of Commerce and
Industry, and a nongovernment organization
(NGO) from the procuring
entitys Pool of Observers;
b. that have:
b.1. knowledge, experience or
expertise in procurement or in
the subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria determined by
the BAC;
Audit Activities
evaluation in regard to:
the selection of the
organization from
which the Observer
will be invited;
knowledge, experience
or expertise in
procurement or in the
subject matter of the
contract to be bid;
no actual or potential
conflict of interest in
the contract to be bid;
and
conformed with other
relevant criteria
determined by the
BAC.
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Audit Sub-objective
Audit Criteria
Audit Activities
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
c. etc.
and develop appropriate
audit recommendations
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
1. Compare the LCRB
determined by the BAC in its
deliberations (per Minutes of
the BAC meeting) with the
LCRB recommended for award
in the BAC Resolution.
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Audit Sub-objective
Audit Criteria
HOPE for award
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.1. The BAC shall recommend
to the Head of the Procuring
Entity the award of contract to the
bidder with the Lowest Calculated
Responsive Bid or the Single
Calculated Responsive Bid after
the post qualification process has
been completed.
To facilitate the approval of the
award, the BAC shall submit the
following supporting documents to
the Head of the Procuring Entity:
a) Resolution of the BAC
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing the
procuring entity to incur
obligations for a specified amount;
and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
concerned
appropriate
entity
authorizing the
procuring
entity to incur
obligations for
a specified
amount?
e. Other pertinent
documents
required by
existing laws,
rules and/or
the procuring
entity
concerned?
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Special Services Sector
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
4. In case of approval, to
verify if the Notice of Award
was immediately issued to
the bidder with the Lowest
Calculated Responsive Bid
as recommended by the BAC
and approved by the HOPE
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.3. In case of approval, the
Head of the Procuring Entity shall
immediately issue the Notice of
Award to the bidder with the
Lowest Calculated Responsive Bid.
In the event the Head of the
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in
writing, a copy furnished the BAC.
Audit Activities
4. Compare the name of the
LCRB recommended by the
BAC and approved by the
HOPE (per BAC Resolution
declaring the LCRB and
recommending award,
approved by the HOPE) with
the name of the bidderawardee in the Notice of
Award.
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Special Services Sector
Commission on Audit
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Audit Sub-objective
Audit Criteria
6. To verify if the BAC posted
the Notice of Award within 3
days from its issuance at the:
a. PhilGEPS website,
b. website of the procuring
entity, and
c. any conspicuous place in
the premises of the
procuring entity.
Audit Activities
9. Access the PhilGEPS website
and the website of the
procuring entity, and conduct
inspection of the area where
the Notice of Award is to be
posted on the 3rd day from the
issuance of the Notice of
Award to the winning bidder.
b. within 3 days
from its issuance
at the website of
the procuring
entity? And
c. within 3 days
from its issuance
at any
conspicuous
place in the
premises of the
procuring entity?
c. right form?
d. right issuing
entity?
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
d) Approval by higher
authority, if required,
within 15 days from
receipt (25 days for
GOCCs)
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.4. Notwithstanding the
issuance of the Notice of Award,
award of contract shall be subject
to the following conditions:
a) Submission of the following
documents within the
prescribed period:
i) Valid JVA, if applicable,
within ten (10) calendar
days from receipt by the
bidder of the notice from
the BAC that the bidder has
the Lowest Calculated
Responsive Bid, as the case
may be; or
ii) ..
b) Posting of performance
security in accordance with
Section 39 of this IRR;
c) Signing of the contract as
provided in Section 37.2 of
this IRR;
d) Approval by higher authority,
if required, as provided in
Section 37.3 of this IRR.
Audit Activities
e. right validity
period?
Was the contract
signed within 10
calendar days from
receipt of the
Notice of Award by
the winning bidder?
If further approval
by higher authority
is required, was the
contract approved
by appropriate
approving authority
or his/her duly
authorized
representative?
Was the contract
approved by higher
authority within 15
calendar days?
(25 calendar days
for GOCCs)?
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Special Services Sector
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Form of
Performance
Security
a) Cash, cashiers/
managers check
issued by a
Universal or
Commercial Bank
b) Bank draft/
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank,
if issued by a
foreign bank.
c) Surety bond
callable upon
demand issued by
a surety or
insurance company
duly certified by
the Insurance
Commission as
authorized to issue
such security.
d) Any combination
of the foregoing.
Audit Activities
Amount of
Performance
Security (Equal
to Percentage
of the Total
Contract Price
Two percent
(2%)
Five percent
(5%)
Proportionate
to share of
form with
respect to total
amount of
security
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Audit Sub-objective
Audit Criteria
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
procurement process, invite, in
addition to the representative of the
COA, at least two (2) observers, who
shall not have the right to vote, to
sit in its proceedings where:
a) At least one (1) shall come from a
duly recognized private group in a
sector or discipline relevant to the
procurement at hand, for example:
i)
ii) For goods, a specific relevant
chamber-member of the
Philippine Chamber of
Commerce and Industry.
iii) and
b) The other observer shall come
from a non-government
organization (NGO).
13.2. The observers shall come from
an organization duly registered with
the Securities
and Exchange Commission (SEC) or
the Cooperative Development
Authority (CDA), and should meet
the following criteria:
a) Knowledge, experience or
expertise in procurement or in the
subject matter of the contract to
be bid;
b) Absence of actual or potential
conflict of interest in the contract
to be bid; and
c) Any other relevant criteria that
may be determined by the BAC.
Audit Activities
or potential
conflict of
interest in the
contract to be
bid?
f. Conformed with
other relevant
criteria
determined by
the BAC?
17. From certified copies of the
invitations to the Observers
with evidence of receipt,
compare the date of receipt
with the 3-day minimum
requirement.
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
applicable;
f) Notice of Award of Contract;
and
g) Other contract documents that
may be required by existing
laws and/or the procuring entity
concerned in the Bidding
Documents,
disapproval by the
HOPE of the BACs
recommendation,
did the HOPE give
instructions to the
BAC on the
subsequent actions
to be adopted?
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
5. In case of disapproval of
the recommendation of award
the HOPE shall state the
reasons for disapproval and
instruct the BAC on the
subsequent actions to be
adopted.
documenting
the
factwinning bidder
b. forfeited the bid security
finding to establish if the
who, through his
of and
winning bidder was
fault, failed,
c. recommended the
responsible for his failure,
refused or was
imposition of sanctions to
refusal, or inability to: (a)
unable to:
the winning bidder who,
to submit the documents
a. submit the
through his fault, failed,
required under Section
documents
refused or was unable:
37.1 of the Revised IRR of
required under
a. to submit the documents
required under Section
37.1 of the Revised IRR
of RA 9184, or
b. to make good its bid by
entering into a contract
with the procuring entity,
or
c. post the required
Performance Security
within the period
stipulated in the Revised
IRR of RA 9184 or in the
Bidding Documents
documenting the
deliberations/evaluation
conducted and the
decisions arrived at;
documenting the
recommendations made to
the HOPE,
look for information on the:
Section 37.1 of
the Revised
IRR of RA
9184?
or
b. to make good its
bid by entering
into a contract
with the
procuring
entity?
or
c. post the required
Performance
Security within
the period
stipulated in
the Revised
IRR of RA
9184 or in the
Bidding
Documents?
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Rated Responsive Bid or the
bidder with the Single
Calculated/Rated Responsive Bid,
fails, refuses or is unable to
submit the documents required
under Section 37.1 of this IRR or
to make good its bid by entering
into a contract with the procuring
entity or post the required
Performance Security within the
period stipulated in this IRR or in
the Bidding Documents, the bid
security shall be forfeited and the
appropriate sanctions provided in
this IRR and existing laws shall be
imposed, except where such
failure, refusal or inability is
through no fault of the said
bidder.
Audit Activities
recommendation of the
imposition of sanctions to
the winning bidder.
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Audit Sub-objective
Audit Criteria
Audit Activities
or
c. post the required
Performance
Security within
the period
stipulated in
the Revised
IRR of RA
9184 or in the
Bidding
Documents?
NOTE:
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
post the required
performance security, or
submit other required
documents within the time
stipulated, declared the
bidding a failure and
conducted a re-bidding with
re-advertisement and/or
posting, as provided for in
Sections 21 and 25 of the
Revised IRR of RA 9184
Audit Activities
submit other required
documents within the time
stipulated.
Look also for information on
the declaration of the bidding
a failure and the conduct of a
re-bidding with readvertisement.
a. declare the
bidding a failure?
and
b. conduct a rebidding with readvertisement
and/or posting?
the required
performance
security, or submit
other required
documents within
the time stipulated,
NOTE:
For the audit on the Failure
of Bidding for the
Procurement of Goods and on
the Competitive/Public
Bidding for the Procurement
of Goods, perform the audit
activities pertaining to these
procurement activities in
other parts of this Guide.
appropriate audit
recommendations.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
A. AUDIT OBJECTIVE:
To verify if the conditions/requirements, procedures for the declaration of failure of bidding
were adhered to by the procuring entity
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
declared a failure of bidding
for reason that:
a) No bids were received; or
b) All prospective bidders
were declared ineligible; or
c) All bids failed to comply
with all the bid
requirements, or
d) all bids failed postqualification, or
e) the bidder with the Lowest
Calculated Responsive Bid
refused, without justifiable
cause, to accept the award
of contract, and no award
was made in accordance
with Section 40 of the RA
9184 and Revised IRR
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
1. From the Minutes of BAC
meetings and other records,
look for information that:
a) No bids were received;
b) All prospective bidders
were declared ineligible;
c) all bids failed to comply
with all the bid
requirements,
d) all bids failed postqualification,
d) the bidder with the Lowest
Calculated Responsive Bid
refused, without justifiable
cause, to accept the award
of contract, and no award
was made in accordance
with Section 40 of the RA
9184 and Revised IRR.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
September 2, 2009:
35.2. In order to determine the
reason for the failed bidding, the
BAC shall conduct a mandatory
review and evaluation of the terms,
conditions, and specifications in the
Bidding Documents, including its
cost estimates.
d. cost estimates?
c. specifications in the
Bidding Documents?
d. cost estimates?
NOTE:
For the audit on the rebidding conducted perform
the audit using the portion of
this Guide on Competitive/
Public Bidding for the
Procurement of Goods.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
member of the Philippine
Chamber of Commerce and
Industry, and a nongovernment organization
(NGO) from the procuring
entitys Pool of Observers;
b. that have:
b.1. knowledge, experience or
expertise in procurement or in
the subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria determined by
the BAC;
Audit Activities
COA?
b. One representing the
specific relevant
chamber-member of the
Philippine Chamber of
Commerce and
Industry?
c. One representing a
non-government
organization?
d. With knowledge,
experience or expertise
in procurement or in the
subject matter of the
contract to be bid?
e. With no actual or
potential conflict of
interest in the contract
to be bid?
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
appropriate audit
recommendations.
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Activities
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
b.3. among the bidders
themselves, or
b.4. a bidder and a third
party,
including any act which
restricts, suppresses or
nullifies or tends to restrict,
suppress or nullify
competition;
or
c. the BAC is found to have
failed in following the
prescribed bidding
procedures;
or
d. the award of the contract
will not redound to the
benefit of the GOP, for
justifiable and reasonable
grounds such as: (i) if the
physical and economic
conditions have significantly
changed so as to render the
project no longer
economically, financially, or
technically feasible, as
determined by the Head of
the Procuring Entity; (ii) if
the project is no longer
necessary as determined by
the Head of the Procuring
Entity; and (iii) if the source
of funds for the project has
been withheld or reduced
through no fault of the
procuring entity.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Section 41. The Head of the
Audit Activities
officers or
employees of the
procuring entity?
Or
c. there was prima
facie evidence of
collusion between
the BAC and any
of the bidders?
or
d. there was prima
facie evidence of
collusion between
or among the
bidders
themselves?
Or
e. there was prima
facie evidence of
collusion between
a bidder and a
third party?
Or
f. there was prima
facie evidence of
any act which
restricted,
suppressed or
nullified
competition?
or
g. the BAC was
found to have
failed in following
the prescribed
bidding
procedures?
or
h. the award of the
contract will not
redound to the
benefit of the
GOP, for justifiable
and reasonable
grounds such as
the physical and
economic
conditions have
significantly
changed so as to
render the project
no longer
economically,
financially, or
technically
feasible, as
determined by the
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
any act which restricts, suppresses
or nullifies or tends to restrict,
suppress or nullify competition;
b) If the BAC is found to have failed in
following the prescribed bidding
procedures; or
c) For any justifiable and reasonable
ground where the award of the
contract will not redound to the
benefit of the GOP, as follows: (i) if
the physical and economic
conditions have significantly changed
so as to render the project no longer
economically, financially, or
technically feasible, as determined
by the Head of the Procuring Entity;
(ii) if the project is no longer
necessary as determined by the
Head of the Procuring Entity; and
(iii) if the source of funds for the
project has been withheld or
reduced through no fault of the
procuring entity.
GPPB Circular 01-2009 dated 20
January 2009
Section 4.9
Audit Activities
Head of the
Procuring Entity?
Or
i. the award of the
contract will not
redound to the
benefit of the
GOP, for justifiable
and reasonable
grounds such as
the project is no
longer necessary
as determined by
the Head of the
Procuring Entity?
Or
j. the award of the
contract will not
redound to the
benefit of the
GOP, for justifiable
and reasonable
grounds such as
the source of
funds for the
project has been
withheld or
reduced through
no fault of the
procuring entity?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
c. etc.
and develop appropriate audit
recommendations
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
ALTERNATIVE METHODS OF
PROCUREMENT FOR GOODS
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
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---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
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Republic of the Philippines
Procurement Procedures:
LIMITED SOURCE BIDDING FOR GOODS
Limited Source Bidding, otherwise known as selective bidding, is a method of procurement of
goods that involves direct invitation to bid by the procuring entity from the list of pre-selected
suppliers with known experience and proven capability on the requirements of the particular
contract.
I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Limited Source Bidding was in accordance
with the rules and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Annual Procurement Plan (APP);
2. evidences to support the conclusion that public bidding cannot be ultimately pursued;
3. list of the only suppliers who can supply the highly specialized types of goods subject of
the specific procurement; or, list of the only suppliers of the major plant component;
4. Minutes of BAC meetings on the deliberations made;
5. BAC Resolution recommending the alternative method of procurement: Limited Source
Bidding, duly approved by the HOPE.
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the original mode of
procurement per APP was
public bidding but cannot be
ultimately pursued;
and,
b. the existence of the conditions
to justify Limited Source
Bidding:
b.1. Procurement of highly
specialized types of goods
(e.g., sophisticated defense
equipment, complex air
navigation systems, coal)
where only a few suppliers
are known to be available,
such that resorting to the
public bidding method will
not likely result in any
additional suppliers
participating in the
bidding; or
Audit Activities
1. From the evaluation
report with supporting
documents and
minutes of the BACs
meetings and relevant
BAC Resolution(s), look
for information on the
BACs validation that
the original mode of
procurement per APP
was public bidding but
cannot be ultimately
pursued and of the
existence of the
conditions to justify
Limited Source
Bidding.
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
No
Particulars of
the Answer
Yes
or
b. Procurement of
major plant
components where
it is deemed
advantageous to
limit the bidding to
known qualified
bidders in order to
maintain uniform
quality and
performance of
the plant as a
whole?
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
NOTE:
Since the requirement of regulations is for the Procuring Entity to prepare the Bidding
Documents including the Invitation to Bid (indicating therein the method of procurement to
be used) and the technical specifications, in accordance with the procedures in the IRR, the
Generic Procurement Manual and the Philippine Bidding Documents (PBDs), the audit
pertaining to Bidding Documents shall be as indicated in the Audit Guide for Bidding
Documents in Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the preselected list. All other procedures for competitive bidding shall be undertaken, except for the
advertisement of Invitation to Bid under Section 21.2.1 of the Revised IRR of RA 9184.
NOTE:
Since the requirement of regulations is for the Procuring Entity to conduct Pre-Procurement
Conference in accordance with the procedures in the IRR, the Generic Procurement Manual
and the Philippine Bidding Documents (PBDs), the audit pertaining to Pre-Procurement
Conference shall be as indicated in the Audit Guide for Pre-Procurement Conference in
Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-selected list.
All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
NOTE:
Since the requirement of regulations is for the Procuring Entity to post the Invitation to Bid in
accordance with the procedures in the IRR, the Generic Procurement Manual and the
Philippine Bidding Documents (PBDs), the audit pertaining to posting of the Invitation to Bid
shall be as indicated in the Audit Guide for posting of the Invitation to Bid in
Competitive/Public Bidding for Goods.
Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the suppliers appearing in the pre-selected list.
All other procedures for competitive bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
c. took into account
capabilities with respect to
personnel,
d. took into account
capabilities with respect to
equipment or
manufacturing facilities,
e. took into account
capabilities with respect to
financial position
in the pre-selection of
suppliers
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
b. took into
account
experience and
past
performance on
similar
contracts?
c. took into
account
capabilities with
respect to
personnel?
d. took into
account
capabilities with
respect to
equipment or
manufacturing
facilities?
e. took into
account
capabilities with
respect to
financial
position?
Audit Sub-objective
Audit Criteria
Audit Activities
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Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
b. the website of the
procuring entity,
c. electronic procurement
service provider, if any,
for a period of 7 calendar
days prior to the opening of
the bids
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
6.2. Once issued by the GPPB, the
use of the Generic Procurement
Manuals (GPMs), Philippine Bidding
Documents (PBDs), and other
standard forms shall be mandatory
upon all Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be made,
particularly for major and specialized
procurement, subject to the
approval of the GPPB.
Audit Activities
1. PhilGEPS
website for 7
calendar days
starting on the
date of
advertisement?
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
3. website
prescribed by the
foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
appropriate audit
recommendations.
NOTE:
Also refer to the OFFENSES
AND PENALTIES portion
of this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To verify the causes of
instances of non-compliance
and develop appropriate
audit recommendations
Audit Activities
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
NOTE:
Since the requirement of regulations is for the Procuring Entity to undertake all
other procedures for competitive bidding, except for the advertisement of Invitation
to Bid, the audit pertaining to other phases/activities in Limited Source Bidding
shall be as indicated in the Audit Guide for Competitive/Public Bidding for Goods.
Audit Criteria:
Manual of Procedures for the Procurement of Goods and Services, Volume 2
7. The BAC proceeds with the pre-bid conference (if deemed warranted under the
circumstances), eligibility check, bid evaluation, post-qualification and succeeding
activities up to contract award, signing and approval, following the procedures for
competitive bidding.
49.4. The BAC of the concerned procuring entity shall directly invite all the
suppliers appearing in the pre-selected list. All other procedures for competitive
bidding shall be undertaken, except for the advertisement of Invitation to Bid
under Section 21.2.1 of the Revised IRR of RA 9184.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission
of bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
DIRECT CONTRACTING FOR GOODS
Direct Contracting or single source procurement is a method of procurement of goods that
does not require elaborate Bidding Documents. The supplier is simply asked to submit a price
quotation or a pro-forma invoice together with the conditions of sale. The offer may be accepted
immediately or after some negotiations.
I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of Direct Contracting was in accordance with the rules and
regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Annual Procurement Plan (APP);
2. evidences to support the conclusion that public bidding cannot be ultimately pursued;
3. evidence of proprietary nature of the item to be procured; or
4. copy of the contract with a provision which requires procurement of critical plant
components from a specific supplier as a condition precedent to hold a contractor to
guarantee its project performance, in accordance with the provisions of its contract; or
5. evidence of exclusive dealership or of absence of sub-dealers selling at lower prices;
6. evidence that no suitable substitute for the item to be procured can be obtained at more
advantageous terms to the GOP;
7. Minutes of BAC meetings on the deliberations made;
8. BAC Resolution recommending the alternative method of procurement: Direct Contracting,
duly approved by the HOPE.
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
validated:
a. that the original mode of
procurement per APP was
public bidding but cannot be
ultimately pursued;
and,
b. the existence of the
conditions to justify Direct
Contracting:
b.1. the goods are
proprietary in nature
which can be obtained
only from the proprietary
Audit Activities
1. From the minutes of the
BACs meetings and
relevant BAC
Resolution(s), look for
information on the BACs
validation that the
original mode of
procurement per APP
was public bidding but
cannot be ultimately
pursued and of the
existence of the
conditions to justify
Direct Contracting.
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
source, i.e. when patents,
trade secrets, and
copyrights prohibit
others from
manufacturing the same
item; or
b.2. the procurement
involves critical plant
components from a
specific supplier and is a
condition precedent to
hold a contractor to
guarantee its project
performance, in
accordance with the
provisions of its contract;
or
b.3. the item to be procured
is sold by an exclusive
dealer or manufacturer
which does not have subdealers selling at lower
prices and for which no
suitable substitute can be
obtained at more
advantageous terms to
the GOP.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Yes
No
Particulars of
the Answer
be obtained only
from the
proprietary source,
i.e. when patents,
trade secrets, and
copyrights prohibit
others from
manufacturing the
same item?
b. the patent,
copyright and
other evidences of
propriety?
or
c. the procurement
involves critical
plant components
from a specific
supplier and is a
condition
precedent to hold
a contractor to
guarantee its
project
performance, in
accordance with
the provisions of
its contract?
or
d. the item to be
procured is sold by
an exclusive dealer
or manufacturer
which does not
have sub-dealers
selling at lower
prices and for
which no suitable
substitute can be
obtained at more
advantageous
terms to the GOP?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of
the Answer
a) Procurement of goods of
proprietary nature which can be
obtained only from the proprietary
source, i.e. when patents, trade
secrets, and copyrights prohibit
others from manufacturing the
same item;
b) When the procurement of critical
plant components from a specific
supplier is a condition precedent
to hold a contractor to guarantee
its project performance, in
accordance with the provisions of
its contract; or
c) Those sold by an exclusive dealer
or manufacturer which does not
have sub-dealers selling at lower
prices and for which no suitable
substitute can be obtained at
more advantageous terms to the
GOP.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To verify if the BAC:
a. recommended the
alternative mode of
procurement: Direct
Contracting to the HOPE,
and
b. the HOPE approved the
method of procurement
Audit Activities
3. From the BAC Resolution
recommending Direct
Contracting as the method
of procurement, look for
the approval of the HOPE.
Audit Question
Yes
No
Particulars of
the Answer
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
c. etc.
and develop appropriate audit
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
recommendations
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results
of the audit with the auditees
Management
COA Circular No. 2009-006 dated
NOTE:
The regulations provide that the method of procurement does not require elaborate
Bidding Documents.
Audit Criteria:
50. Direct Contracting or single source procurement is a method of procurement of
goods that does not require elaborate Bidding Documents. The supplier is simply
asked to submit a price quotation or a pro-forma invoice together with the
conditions of sale. The offer may be accepted immediately or after some
negotiations.
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To verify if the
Procuring Entity
evaluated and accepted
the offer based on preestablished criteria and
procedures
Audit Activities
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
recommendations
Audit Activities
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with
the auditees
Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
REPEAT ORDER FOR GOODS
Repeat Order, when provided for in the APP, is a method of procurement of goods from the
previous winning bidder, whenever there is a need to replenish goods procured under a contract
previously awarded through Competitive Bidding.
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Repeat Order was in accordance with the
rules and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Annual Procurement Plan (APP);
2. copy of the original contract and evidences that it was awarded through Competitive
Bidding;
3. copy of the prices for the repeat order with evidences that they are the prevailing market
price (advantageous to the GOP) as of the time of the negotiation;
4. evidences to support the conclusion that the repeat order contract did not result to
splitting of requisition or contract;
5. Analysis showing that the quantity of each item in the repeat order did not exceed twentyfive percent (25%) of the quantity of each item in the original contract;
6. Minutes of BAC meetings on the deliberations made;
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
validated:
a. that Repeat Order is the
mode of procurement
provided for in the approved
APP;
and that:
b. the original contract was
previously awarded through
Competitive Bidding;
c. Unit prices of the repeat
order were the same as or
lower than those in the
original contract, provided
that such prices are still the
most advantageous to the
GOP after price verification;
d. The repeat order will not
result in splitting of
contracts, requisitions, or
purchase orders, as provided
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
for in Section 54.1 of the
Revised IRR of RA 9184;
e. Except in cases duly
approved by the GPPB, the
repeat order was availed of
only within six (6) months
from the contract effectivity
date stated in the Notice to
Proceed arising from the
original contract;
and
f. The repeat order did NOT
exceed twenty-five percent
(25%) of the quantity of
each item in the original
contract.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
2. Ahead of the
procurement, request the
BAC Secretariat for
advance information on
the schedule of any
posting.
c. any conspicuous
place in the
premises of the
procuring
entity?
4. Conduct ocular
inspection on the schedule
of posting.
Audit Sub-objective
Audit Criteria
the:
a. validity of the procurement
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to be
made on the basis of the
contract;
c. etc.
and develop appropriate audit
recommendations
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results
of the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
SHOPPING FOR GOODS
Shopping is a method of procurement of goods whereby the procuring entity simply
requests for the submission of price quotations for readily available off-the-shelf goods or
ordinary/regular equipment to be procured directly from suppliers of known qualifications.
I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Shopping was in accordance with the rules
and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Annual Procurement Plan (APP);
2. evidences to support the conclusion that public bidding cannot be ultimately pursued;
3. evidences to support the occurrence of unforeseen contingency requiring immediate
purchase;
4. analysis leading to the conclusion that the items procured were ordinary or regular
office supplies and equipment;
5. evidences of the non-availability of the items in the Procurement Service;
6. analysis leading to the conclusion that the amounts involved are within the threshold
provided in Annex H of the Revised IRR of RA 9184;
7. Minutes of BAC meetings on the deliberations made;
8. BAC Resolution recommending the alternative method of procurement: Shopping, duly
approved by the HOPE.
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Procurement Service;
b.3. the amounts involved did
not exceed the thresholds
in Annex H of the
Revised IRR of RA 9184,
Audit Activities
Yes
No
Particulars of
the Answer
immediate
purchase?
or
b. procurement of
ordinary or regular
office supplies and
equipment not
available in the
Procurement
Service?
Or
c. the amounts
involved did not
exceed the
thresholds in
Annex H of the
Revised IRR of RA
9184?
Did the BAC validate
that there is no
splitting?
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of
the Answer
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Technical Services Office
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Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of
the Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
Audit Activities
Audit Question
Yes
Particulars of
the Answer
No
Audit Sub-objective
Audit Criteria
1. To verify if the Procuring
Entity obtained price
quotations from at least 3
bona fide suppliers (1
supplier during unforeseen
contingencies requiring
immediate purchase)
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
Audit Activities
Did the
procurement unit
of the Procuring
Entity obtain price
quotations from at
least 3 bona fide
suppliers (or 1
supplier during
unforeseen
contingencies)?
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
September 2, 2009:
2. . . .
3. Procedural Guidelines
2. For procurement of
ordinary or regular office
supplies and equipment with
an ABC of more than Php
50,000.00, To verify if the
procuring entity posted the
RFQs in:
a. the PhilGEPS,
b. the website of the
procuring entity, if
available
c. any conspicuous place in
the premises of the
procuring entity
for a period of 7 calendar
days
Guidelines for Shopping and Small
Value Procurement covered by GPPB
Resolution No. 09-2009, dated 23
November 2009:
Did the
procurement unit
of the Procuring
Entity post the
notice of award in:
a. the PhilGEPS
for a period of 7
calendar days?
b. the website of
the procuring
entity for a
period of 7
calendar days?
c. any
conspicuous
place in the
premises of the
procuring entity
for a period of 7
calendar days?
1. . . .
2. . . .
3. Procedural Guidelines
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
1. . . .
2. . . .
3. Procedural Guidelines
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations?
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations after
the deadline for
submission of price
quotations?
Did the
procurement unit
of the Procuring
Entity determine
the lowest
quotation?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Guidelines for Shopping and Small
Value Procurement covered by GPPB
Resolution No. 09-2009, dated 23
November 2009:
1. . . .
2. . . .
3. Procedural Guidelines
Audit Activities
conditions stated in
the RFQ?
a. the PhilGEPS?
b. the website of
the procuring
entity?
c. any
conspicuous
place in the
premises of
the procuring
entity?
1. . . .
2. . . .
3. Procedural Guidelines
appropriate audit
recommendations.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
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---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF GOODS
AFTER TWO (2) FAILED BIDDINGS
Negotiated Procurement is a method of procurement of goods whereby the procuring
entity directly negotiates a contract with a technically, legally, and financially capable supplier.
It is resorted after two failed biddings (where there has been failure of public bidding
for the second time) or in any of the following cases:
a.
b.
c.
d.
e.
f.
g.
Emergency Cases,
Agency-to-Agency,
Procurement Agent,
Defense Cooperation Agreement,
Small-Value Procurement,
NGO Participation
United Nations Agencies.
Audit Sub-objective
Audit Criteria
1. To verify if the procuring
entity maintained a registry
of suppliers as basis for
selecting the suppliers for
negotiations
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
c. etc.
and develop appropriate
audit recommendations
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Section 35 of this IRR, the
BAC shall revise and agree
on the minimum technical
specifications, and if
necessary, adjust the ABC,
subject to the required
approvals. However the
ABC cannot be increased by
more than twenty percent
(20%) of the ABC for the
last failed bidding.
Audit Activities
Customized Bidding
Documents approved by
the GPPB or the Philippine
Bidding Documents for
the Procurement of
Goods, 3rd Edition
(October 2009) issued by
the GPPB and Section 17
of the Implementing
Rules and Regulations of
RA 9184 as amended on
September 2, 2009:
a. Approved Budget for
Philippine Bidding
Documents for the
Procurement of Goods and
Section 17.1 of the
Implementing Rules and
Regulations of RA 9184,
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
the Contract;
b. Request for
Submission of Price
Quotations;
c. Eligibility
Requirements;
d. Instruction to Bidders,
including scope of bid/
proposal, documents
comprising the bid/
proposal, criteria for
eligibility, price
quotations evaluation
methodology/criteria
in accordance with the
Act, and postqualification, as well
as the date, time and
place of the pre-bid
conference (where
applicable),
submission and
opening of price
quotations;
d.1. including:
Following
completion of the
negotiations, the
BAC shall request
all suppliers
remaining in the
proceedings to
submit on a
specified date, a
best and final offer
with respect to all
aspects of the
proposals, and
d.2. selection of the
successful offer on
the basis of such
best and final offers
meeting the
minimum technical
requirements and
not exceeding the
ABC;
e. Scope of work, where
applicable;
f. Plans/Drawings and
Audit Activities
If the customized
Bidding Documents are not
compliant, compare the
procurement-specific Bidding
Documents with the
Philippine Bidding
Documents for the
Procurement of Goods
issued by the GPPB.
comprising the
bid/ proposal?
- criteria for
eligibility?
- Price quotations
evaluation
methodology/
criteria?
- postqualification
methodology?
- date of the prebid conference,
if applicable?
- time of the prebid conference?
- Place of the
pre-bid
conference?
- Deadline for
submission of
price
quotations?
- Place of
submission of
price
quotations?
- Date of opening
of price
quotations?
- Time of opening
of price
quotations?
- Place of opening
of price
quotations?
- following
completion of
the
negotiations,
requesting all
suppliers
remaining in the
proceedings to
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
g.
h.
i.
j.
Technical
Specifications;
Form of Bid, Price
Form, and List of
Goods;
Delivery Time or
Completion Schedule;
Form, Amount, and
Validity of
Performance Security
and Warranty;
Form of Contract and
General and Special
Conditions of
Contract;
Audit Activities
submit on a
specified date, a
best and final
offer with
respect to all
aspects of the
proposals?
- selection of the
successful offer
on the basis of
such best and
final offers
meeting the
minimum
technical
requirements
and not
exceeding the
ABC?
e. Scope of work?
f. Plans/Drawings
and Technical
Specifications?
g. Form of Bid, Price
Form, and List of
Goods?
h. Delivery Schedule
or Completion
Schedule?
i. Form, Amount,
and Validity of
Performance
Security and
Warranty
j. Form of Contract
and General and
Special Conditions
of Contract?
Are the Bidding
Documents in the
required form:
a. Request for
Submission of
Price Quotation?
b. Instructions to
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
submission of bid securities
may be dispensed with.]
j. Form, Amount, and Validity
of Performance Security and
Warranty;
Audit Activities
Bidders?
c. Price Quotation
Data Sheet?
d. General Conditions
of the Contract?
e. Special Conditions
of Contract?
f. Schedule of
Requirements?
g. Technical
Specifications?
h. Price Quotation
Forms?
Audit Sub-objective
Audit Criteria
Audit Activities
government financial
institutions, state universities
and college, and local
government units, are hereby
mandated to use the
Philippine Bidding Documents
Third Edition for all of their
procurement activities.
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
c. etc.
and develop appropriate
audit recommendations
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with
the auditees
Management
The pre-procurement conference is the forum where all officials involved in the
procurement meet and discuss all aspects of a specific procurement activity, which includes the
technical specifications, the Approved Budget for the Contract (ABC), the applicability and
appropriateness of the recommended method of procurement and the related milestones, the
bidding documents, and availability of the pertinent budget release for the project.
A. AUDIT OBJECTIVES:
1. To verify if the Pre-Procurement Conference was conducted within the required time;
2. To verify if the participants to the Pre-Procurement Conference were as required;
3. To verify if during the Pre-Procurement Conference the participants, led by the Bids and
Awards Committee (BAC), performed the required tasks and attained the objectives of
the Conference.
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Minutes of Pre-Procurement Conference duly certified by the BAC
Secretariat;
2. Invitation to Bid;
3. Duly certified copies of the documents (Office Orders, contracts,
Organizational/Functional Charts, etc) which the BAC Secretariat used as bases for
identifying and notifying the participants to the Pre-Procurement Conference, including
duly certified copies of the notices issued with evidence of receipt by the participants.
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC conducted
the Pre-Procurement Conference
prior to the posting or the
issuance of the Invitation or
Audit Activities
Audit Question
Did the
participants to
the PreProcurement
Conference
include the:
Yes
No
a. BAC?
b. Secretariat?
c. unit or
officials who
prepared the
Bidding
Documents
and the draft
Invitation to
Bid?
d. consultants
hired by the
procuring
entity, who
prepared the
Bidding
Documents
and the draft
Invitation to
Bid?
Did the
participants led
by the BAC
discuss and
confirm the:
---------------------------------------------------------------------------------------------------------Prepared by:
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Particulars of
the Answer
Audit Sub-objective
Audit Criteria
objectives:
a. Discussed relevant
information and confirmed the
description of the scope of the
contract, the ABC, and contract
duration;
b. Discussed relevant
information and confirmed that
the procurement is in accordance
with the project procurement
management plan (PPMP) and
annual procurement plan (APP);
c. Discussed relevant
information and confirmed
readiness of the procurement at
hand on the following:
c.1. the availability of
appropriations and
programmed budget for
contract;
c.2. completeness of the
Bidding Documents and their
adherence to relevant general
procurement guidelines;
d. Reviewed, modified and
agreed on the criteria for
eligibility screening, evaluation,
and post-qualification;
f. Reviewed and adopted the
procurement schedule, including
deadlines and timeframes, for
the different activities;
g. Reiterated and emphasized
the importance of confidentiality
and the applicable sanctions and
penalties, as well as agreed on
measures to ensure compliance
with the foregoing;
h. Confirmed that there was no
splitting; and
i. identified the justification for
the change in the mode of
procurement from public bidding
to Negotiated Procurement and
Audit Activities
Audit Question
Yes
No
a. Description of
the scope of
the contract?
b. That there
was no
splitting?
c. ABC?
d. Contract
duration?
Did the
participants led
by the BAC
discuss and
confirm that the
procurement is in
accordance with
the PPMP and
APP?
Did the
participants led
by the BAC
discuss and
confirm that the
procurement at
hand is ready as
to:
a. availability of
appropriations
and
programmed
budget for the
contract?
b. completeness
of
the Bidding
Documents?
c. adherence of
the Bidding
Documents
with the
PBDs/
customized
Bidding
Documents?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Did the
participants led
by the BAC
discuss and
confirm the
justifications for
the change in the
mode of
procurement
from public
bidding to
Negotiated
Procurement and
agreed on the
recommendation
s to the HOPE?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Republic of the Philippines
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
as well as agree on measures to
ensure compliance with the
foregoing.
Audit Activities
Audit Question
Did the
participants led
by the BAC
discuss and
confirm the
criteria for:
Did the
participants led
by the BAC
discuss and
confirm the
adoption of the
procurement
schedule
including
deadlines and
timeframes for
the different
activities?
Yes
No
a. Eligibility
screening?
b. Price
Quotation
evaluation?
c. Postqualification?
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Did the
participants led
by the BAC
reiterate and
emphasize the
importance of
confidentiality
and the
applicable
sanctions and
penalties, as well
as the agreement
on measures to
ensure
compliance?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
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Republic of the Philippines
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Definition:
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
appropriate audit
recommendations.
c. etc.
and develop appropriate audit
recommendations
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
develop appropriate audit
recommendations
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
Audit Sub-objective
Audit Criteria
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Question
1. To verify if through a
Resolution the BAC presented
two (2) failed biddings as the
justification for the negotiated
procurement and recommended
change in the mode of
procurement to the HOPE for
approval
Yes
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
appropriate audit
recommendations.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Question
1. From the Minutes of the BAC
1. To verify if the BAC used
the Procuring Entitys registry meetings, TWG evaluation
reports supported with copies of
of suppliers as basis for
the Procuring Entitys Registry
selecting the suppliers to be
of suppliers, look for information
invited for the negotiations
on the basis of identification of
Yes
No
Particulars of
the Answer
Price Quotations
Submission of Price
Quotations
continuously in
the:
1. PhilGEPS
website for 7
calendar days
starting on the
date of
advertisement?
2. website of the
procuring entity
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
posting as prescribed in Section
21.2.1 of this IRR may be
dispensed with: Provided,
however, That the BAC, through
its Secretariat, shall post the
invitation or request for
submission of price quotations for
Shopping under Sections 52.1(b)
and Negotiated Procurement
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
entity for a period of seven (7)
calendar days.
Price Quotations
continuously at any
conspicuous place reserved
for the purpose in the
premises of the procuring
entity for 7 calendar days, as
certified by the head of the
BAC Secretariat of the
procuring entity
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
54.2. For alternative methods of
procurement, advertisement and
posting as prescribed in Section
21.2.1 of this IRR may be
dispensed with: Provided,
however, That the BAC, through
its Secretariat, shall post the
invitation or request for
submission of price quotations for
Shopping under Sections 52.1(b)
and Negotiated Procurement
under Sections 53.1 (two-failed
biddings) and 53.9 (small value
procurement) of this IRR in the
PhilGEPS website, the website of
the procuring entity concerned, if
available, and at any conspicuous
place reserved for this purpose in
the premises of the procuring
Audit Activities
the Answer
OR
From the printouts of the web
pages indicating the dates of
printing, obtained from and duly
certified by the BAC Secretariat
as true and correct, compare
these dates with the required
dates of posting.
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
1. continuously for
seven (7) calendar
days?
2. at the
conspicuous place
reserved for the
purpose in the
premises of the
procuring entity?
3. as certified by
the head of the
BAC Secretariat of
the procuring
entity?
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
audit recommendations.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Audit Activities
the Answer
Prepare the appropriate audit/
validation document reflecting
the results of the audit/validation
and transmit to Management
NOTES:
1. Based on the following requirement of the Manual of Procedures for the
Procurement of Goods Vol 2 published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed
with particular attention given to compliance by the BAC of the following
provisions of the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.5. The procuring entity shall select the successful offer on the basis of such
best and final offers which should meet the procuring entitys minimum
technical requirements and should not exceed the ABC.
---------------------------------------------------------------------------------------------------------Prepared by:
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54.4. Except for Limited Source Bidding under Section 49 of this IRR,
submission of bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF GOODS
EMERGENCY CASES
Negotiated Procurement is a method of procurement of goods whereby the procuring
entity directly negotiates a contract with a technically, legally, and financially capable supplier.
It may be resorted to in emergency cases or in any of the following cases:
a.
b.
c.
d.
e.
f.
g.
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
causes where
immediate action
is necessary to
prevent damage to
or loss of life or
property, or to
restore vital public
services,
infrastructure
facilities and other
public utilities?
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars
of the
Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
NOTES:
1.
Based on the following requirement of the Manual of Procedures for the Procurement of
Goods Vol. 2 published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
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---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
AGENCY-TO-AGENCY
Negotiated Procurement may be resorted to in an agency-to-agency procurement or
in any of the following cases:
a.
b.
c.
d.
e.
f.
g.
Procurement of goods from another agency of the Government of the Philippines (GOP),
such as the Procurement Service, Department of Budget and Management (PS-DBM), which is
tasked with a centralized procurement of Common-Use Supplies for the GOP in accordance with
Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.
For purposes of Section 53.5 of the Revised IRR of RA 9184, the term agency excludes
GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the Corporation Code of
the Philippines.
NOTE:
No Audit Guide has been developed for this alternative method of
procurement since the GPPB has yet to issue the Guidelines pursuant
to the Revised IRR of RA 9184.
---------------------------------------------------------------------------------------------------------Prepared by:
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---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
SMALL- VALUE PROCUREMENT
Small-Value Procurement - Where the procurement does not fall under Shopping in Section
52 of the Revised IRR of RA 9184 and the amount involved does not exceed the thresholds
prescribed in Annex H of said IRR, the procuring entity shall draw up a list of at least three (3)
suppliers of known qualifications which will be invited to submit proposals.
The thresholds for this method of procurement are:
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
b) For LGUs, in accordance with the following schedule:
DOF Classification of LGUs
1st Class
2nd Class
3rd Class
4th Class
5th Class
6th Class
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the original mode of
procurement per APP was
public bidding but cannot be
ultimately pursued;
b. the existence of the conditions
to justify Small-Value
Procurement:
b.1. procurement does not
fall under Shopping in
Section 52 of the IRR;
b.2. the amounts involved did
not exceed the thresholds
in Annex H of the
Revised IRR of RA 9184.
c. that there was not splitting
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
recommended in the APP was public
bidding but cannot be ultimately
pursued, the BAC, through a
Resolution, shall justify and
recommend the change in the mode
of procurement to be approved by
the HOPE.
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
appropriate audit
recommendations.
Also determine if
appropriate actions were
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
resulting contract;
b. validity of any payment to be
made on the basis of the
contract;
c. etc.
and develop appropriate audit
recommendations
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
1. To verify if the Procuring
Entity obtained price
quotations (RFQs) from at
least three (3) bona fide
suppliers
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Did the
procurement unit
of the Procuring
Entity obtain price
quotations from at
least 3 bona fide
suppliers?
2. Ahead of the
procurement, request the
procuring entity for advance
information on the schedule
of any posting.
Did the
procurement unit
of the Procuring
Entity post the
notice of award in:
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
b. the website of the
procuring entity, if
available
c. any conspicuous place in
the premises of the
procuring entity
for a period of 7 calendar
days
Guidelines for Shopping and Small
Value Procurement covered by GPPB
Resolution No. 09-2009, dated 23
November 2009:
Audit Activities
the Answer
1. . . .
2. . . .
3. Procedural Guidelines
2. . . .
3. Procedural Guidelines
a. the PhilGEPS
for a period of 7
calendar days?
b. the website of
the procuring
entity for a
period of 7
calendar days?
c. any
conspicuous
place in the
premises of the
procuring entity
for a period of 7
calendar days?
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations?
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations after
the deadline for
submission of price
quotations?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
2. . . .
3. Procedural Guidelines
9. Ahead of the
procurement, request the
procuring entity for advance
information on the schedule
of any posting.
1. . . .
2. . . .
3. Procedural Guidelines
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
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---------------------------------------------------------------------------------------------------------Prepared by:
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Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
DEFENSE COOPERATION AGREEMENT
Negotiated Procurement is a method of procurement of goods whereby the procuring
entity directly negotiates a contract with a technically, legally, and financially capable supplier. It
may be resorted to in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases,
(3) Agency-to-Agency, (4) Procurement Agent, (5) Defense Cooperation Agreement, (6) SmallValue Procurement, (7) NGO Participation, (8) United Nations Agencies.
Defense Cooperation Agreement - Upon prior approval by the President of the Philippines,
and when the procurement for use by the AFP involves major defense equipment or materiel
and/or defense-related consultancy services, when the expertise or capability required is not
available locally, and the Secretary of National Defense has determined that the interests of the
country shall be protected by negotiating directly with an agency or instrumentality of another
country with which the Philippines has entered into a defense cooperation agreement or otherwise
maintains diplomatic relations: Provided, however, That the performance by the supplier of its
obligations under the procurement contract shall be covered by a performance security in
accordance with Section 39 of the Revised IRR of RA 9184.
NOTE:
The Audit Guide on Direct Contracting may be used as reference, to consider the following
criteria embodied in Section 53.8 of the Revised IRR of RA 9184:
1. There is prior approval by the President of the Philippines,
2. The procurement is by the AFP and involves major defense equipment or materiel;
3. The Secretary of National Defense has determined that the interests of the country
shall be protected by negotiating directly with an agency or instrumentality of another
country with which the Philippines has entered into a defense cooperation agreement
or otherwise maintains diplomatic relations;
4. the performance by the supplier of its obligations under the procurement contract
shall be covered by a performance security in accordance with Section 39 of the
Revised IRR of RA 9184
---------------------------------------------------------------------------------------------------------Prepared by:
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---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR GOODS
UNITED NATIONS AGENCIES
Negotiated Procurement is a method of procurement of goods whereby the procuring entity
directly negotiates a contract with a technically, legally, and financially capable supplier in any of the
following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) Agency-to-Agency, (4) Procurement
Agent, (5) Defense Cooperation Agreement, (6) Small-Value Procurement, (7) NGO Participation, (8)
United Nations Agencies.
United Nations Agencies - Procurement from specialized agencies of the United Nations of any
of the following:
(a) small quantities of off-the-shelf goods, primarily in the fields of education and health; and
(b) specialized products where the number of suppliers is limited, such as vaccines or drugs.
NOTE:
No Audit Guide has been developed for this method of procurement in the
absence of regulations specifying the requirements and the related procedures.
---------------------------------------------------------------------------------------------------------Prepared by:
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---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF INFRASTRUCTURE PROJECTS
I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard forms
and manuals prescribed by the Government Procurement Policy Board (GPPB)
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Document needed for evaluation:
1. The procuring entitys Customized Bidding Documents for Infrastructure Projects;
2. Bidding Documents for the specific procurement.
Audit Sub-objective
Audit Criteria
1. To verify if the Bidding
Documents for the specific
procurement include the
information and are
according to the forms
indicated in the
Customized Bidding
Documents approved by
the GPPB or the Philippine
Bidding Documents for the
Procurement of
Infrastructure Projects, 3rd
Edition (October 2009)
issued by the GPPB and
Section 17 of the
Implementing Rules and
Regulations of RA 9184 as
amended on September 2,
2009:
Audit Activities
Philippine Bidding
Documents for the
Procurement of
Infrastructure Projects and
Section 17.1 of the
Implementing Rules and
Regulations of RA 9184,
If the customized
Bidding Documents are not
compliant, compare the
procurement-specific Bidding
Documents with the
Philippine Bidding
Documents for the
Procurement of
Infrastructure Projects
issued by the GPPB.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
e.
f.
g.
h.
i.
j.
l.
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
h. Bidding Forms?
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
as amended on September 2,
2009:
Observers shall be invited at
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with
the auditees Management
COA Circular No. 2009-006
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
1. To verify if the BAC
conducted the PreProcurement Conference
prior to the advertisement or
the issuance of the Invitation
to Bid
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. Prior to the Advertisement or
the issuance of the Invitation to Bid
for each procurement undertaken
through public bidding, the BAC,
through its Secretariat shall call for
a Pre-Procurement Conference.
Audit Activities
1. Secure from the BAC
Secretariat a duly certified
copy of the Minutes of Pre-
Procurement Conference
Yes
No
Particulars of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
2. To verify if the participants
to the Pre-Procurement
Conference included the BAC,
the Secretariat, the unit or
officials, including
consultants hired by the
procuring entity, who
prepared the Bidding
Documents and the draft
Invitation to Bid
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. The pre-procurement
conference shall be attended by
the BAC, the Secretariat, the unit
or officials, including consultants
hired by the procuring entity, who
prepared the Bidding Documents
and the draft Invitation to Bid, for
each procurement.
Audit Activities
2. Secure from the BAC
Secretariat duly certified
copies of the documents
(Office Orders, contracts,
Organizational/Functional
Charts, etc) which it used as
bases for identifying and
notifying the participants to
the Pre-Procurement
Conference, including duly
certified copies of the
notices issued with evidence
of receipt by the
participants.
3. From the Minutes of PreProcurement Conference
Procurement Conference
Yes
No
Particulars of the
Answer
c. Discussed relevant
information and confirmed
readiness of the procurement
at hand on the following:
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
c.1. the availability of
appropriations and
programmed budget for
contract;
c.2. completeness of the
Bidding Documents and
their adherence to relevant
general procurement
guidelines;
c.3. completion of the
detailed engineering
according to the prescribed
standards in the case of
infrastructure projects;
c.4. confirmation of the
availability of ROW and the
ownership of affected
properties.
d. Reviewed, modified and
agreed on the criteria for
eligibility screening,
evaluation, and postqualification;
f. Reviewed and adopted
the procurement schedule,
including deadlines and
timeframes, for the different
activities; and
g. Reiterated and
emphasized the importance
of confidentiality and the
applicable sanctions and
penalties, as well as agreed
on measures to ensure
compliance with the
foregoing.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. During the conference, the
participants, led by the BAC, shall:
a. Confirm the description and scope
of the contract, the ABC, and
contract duration;
b. Ensure that the procurement is in
accordance with the project and
annual procurement plans;
c. Determine the readiness of the
procurement at hand, including,
among other aspects, the following:
Audit Activities
5. From the Minutes of PreProcurement Conference
Procurement Conference
Yes
No
Particulars of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
d.
e.
f.
i) availability of appropriations
and programmed budget for
the contract;
ii) completeness of the Bidding
Documents and their
adherence to relevant
general procurement
guidelines;
iii) completion of the detailed
engineering according to
the prescribed standards in
the case of infrastructure
projects;
iv) confirmation of the
availability of ROW and the
ownership of affected
properties.
Review, modify and agree on
the criteria for eligibility
screening, evaluation, and postqualification;
Review and adopt the
procurement schedule, including
deadlines and timeframes, for
the different activities; and
Reiterate and emphasize the
importance of confidentiality
and the applicable sanctions
and penalties, as well as agree
on measures to ensure
compliance with the foregoing.
7.2. No procurement shall be
undertaken unless it is in
accordance with the approved
APP of the procuring entity. The
APP shall bear the approval of
the Head of the Procuring Entity
or second-ranking official
designated by the Head of the
Procuring Entity to act on his
behalf, and must be consistent
with its duly approved yearly
budget.
Audit Activities
7. From the Minutes of Pre-
Procurement Conference
Particulars of the
Answer
a. Eligibility
screening?
b. Bid evaluation?
c. Post-qualification?
No
Yes
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
projects, agencies can proceed
with the procurement activities
prior to issuance of the notice of
award using as basis the NEP
figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agencys budget, the
head of the agency shall
identify and thereafter notify the
implementing units (IUs) of the
amount allocated for the
projects they are to implement.
On the basis of said notification,
the heads of the respective IUs,
as procuring entities, can
proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs),
for which the initial funding
sourced from either the
existing/current years budget or
the NEP is not sufficient to
cover the total cost of the
project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM
Circular Letter 2004-012 prior to
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBM for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
Audit Activities
Yes
No
Particulars of the
Answer
Definition:
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
issued by the Department of
Budget and Management
(DBM) which authorizes an
agency to incur obligations for
a specified amount as
contained in a legislated
appropriation. The allotment
issued may either be trough
the Agency Budget Matrix
(ABM) which covers the
comprehensive release of
specifically appropriated items
in the agencys budget or
through the Special Allotment
Release Order (SARO).
Audit Activities
Yes
No
Particulars of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
a. validity of the procurement
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
Yes
No
Particulars of the
Answer
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To verify if the BAC posted
the Invitation to Bid
continuously in the PhilGEPS
website, the website of the
procuring entity concerned,
if available, and the website
prescribed by the foreign
government/foreign or
international financing
institution, if applicable, for
7 calendar days starting on
the date of advertisement
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
21.2.1. Except as otherwise
provided in Sections 21.2.2 and
54.2 of this IRR and for the
procurement of common-use
goods and supplies, the Invitation
to Bid shall be:
c.
Audit Activities
the Answer
3. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
Invitation to Bid
continuously in the:
6. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
7. Conduct ocular inspection
on the first day of posting.
8. Repeat the ocular
inspections (may be at
random) during the 7-day
period to verify the postings.
9. Request for the
certification of the head of
the BAC Secretariat.
1. PhilGEPS website
for 7 calendar
days starting on
the date of
advertisement?
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
3. website prescribed
by the foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
a.
b.
c. Posted at any conspicuous place
reserved for the purpose in the
premises of the procuring entity
for 7 calendar days, as certified
by the head of the BAC
Secretariat of the procuring
entity.
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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government/foreign or
Audit Activities
1. Ahead of any
procurement, request the
BAC Secretariat for
advance information on
the first day of any
posting.
2. On the first day of
posting access the
PhilGEPS website, the
website of the procuring
entity concerned, if
available, and website
prescribed by the foreign
government/ foreign or
international financing
institution, if applicable.
Print the page where the
notice was posted (to
form part of the audit
evidences).
3. Access the websites at
random during the 7-day
period to verify the
postings.
OR
From the printouts of the
web pages indicating the
dates of printing, obtained
from and duly certified by
the BAC Secretariat as a
true and correct, compare
these dates with the
Invitation to Bid
continuously in the:
1. PhilGEPS website
for 7 calendar
days starting on
the date of
advertisement?
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
3. website prescribed
by the foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
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Audit Activities
4. Ahead of any
procurement, request the
BAC Secretariat for
advance information on
the first day of any
posting.
5. Conduct ocular
inspection on the first day
of posting.
2. at the conspicuous
place reserved for the
purpose in the
premises of the
procuring entity?
1. continuously for
seven (7) calendar
days?
3. as certified by the
head of the BAC
Secretariat of the
procuring entity?
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Audit Activities
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Audit Criteria
Audit Activities
the Answer
appropriate audit
recommendations.
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activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Audit Activities
the Answer
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Audit Sub-objective
Audit Criteria
2. To verify if the Pre-Bid
Conference was held at least
twelve (12) calendar days before
the deadline for the submission
and receipt of bids
Audit Activities
the Answer
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Audit Activities
the Answer
September 2, 2009:
of failure of the
bidding?
i. requirements in
the Instructions
to Bidders?
j. specifications?
k. other conditions
of the project?
l. warranty
requirement of
the project?
m. different
offenses and
penalties
provided for in
IRR of RA
9184?
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Audit Activities
the Answer
knowledge,
experience or
expertise in
procurement or in the
subject matter of the
contract to be bid;
no actual or potential
conflict of interest in
the contract to be
bid; and
e. With no actual
or potential
conflict of
interest in the
contract to be
bid?
f. Conformed with
other relevant
criteria
determined by
the BAC?
8. From certified copies of
the invitations to the
Observers with evidence
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iii) and
b) The other observer shall come from a
non-government organization (NGO).
13.2. The observers shall come from an
organization duly registered with the
Securities and Exchange Commission
(SEC) or the Cooperative Development
Authority (CDA), and should meet the
following criteria:
a) Knowledge, experience or expertise in
procurement or in the subject matter of
the contract to be bid;
b) Absence of actual or potential conflict
of interest in the contract to be bid; and
c) Any other relevant criteria that may be
determined by the BAC.
Audit Activities
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Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
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Audit Activities
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
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22.4. Any
statement made at the pre-bid
conference shall not modify the terms
of the Bidding Documents, unless
such statement is specifically
identified in writing as an amendment
thereto and issued as a
Supplemental/ Bid Bulletin.
22.5.1. The BAC shall respond to
Audit Activities
the Answer
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Audit Activities
3. Obtain copy/ies of
b.
c.
3. To verify if:
a. Supplemental/Bid Bulletins
initiated by the procuring
entity for purposes of
clarifying or modifying any
provision of the Bidding
Documents were issued at
least seven (7) calendar
the Answer
2. To verify if:
a. requests for
clarification(s) on any
part of the Bidding
Documents or for an
interpretation were in
writing and submitted to
the BAC of the procuring
entity at least ten (10)
calendar days before the
deadline set for the
submission and receipt of
bids;
Clarification
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days before the deadline
for the submission and
receipt of bids;
b. Modifications to the
Bidding Documents were
identified as amendments;
Audit Activities
the Answer
day requirement.
8. Go through the
Supplemental/Bid Bulletins
and check for the signature
of the BAC Chairman.
Supplemental/Bid
Bulletins:
a. on the PhilGEPS?
and
b. the website of the
procuring entity
concerned?
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Supplemental/Bid
Bulletins?
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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2. To verify the causes of
instances of non-compliance
and develop appropriate
audit recommendations
Audit Activities
the Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Audit Activities
authorized
representative as
indicated in the Sworn
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25.1. Bidders shall submit their bids
Audit Activities
the Answer
Statement.
2. Go through the
4. Go through the
2. To verify if the
BAC validated that in modifying a
bid:
a. it was done before the deadline
for the submission and receipt of
bids,
b. the original bid was not retrieved
but another bid equally sealed,
properly identified, was submitted
and linked to the original bid and
marked as a modification,
thereof, and stamped received
by the BAC
Implementing Rules and Regulations (IRR) of
RA 9184, as amended on September 2, 2009:
26.1. A bidder may modify its bid, provided
that this is done before the deadline for the
submission and receipt of bids. Where a
bidder modifies its bid, it shall not be
allowed to retrieve its original bid, but shall
only be allowed to send another bid equally
sealed, properly identified, linked to its
information pertaining to
opening of two (2)
sealed envelops of each
bidder.
5. Go through the
records of the BAC
pertaining to the
submission of bids of
each bidder and check if
the submission of
modifications were done
before the deadline for
the submission and
receipt.
6. Go through the
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original bid and marked as a modification,
thereof, and stamped received by the
BAC. Bid modifications received after the
applicable deadline shall not be considered
and shall be returned to the bidder
unopened.
Audit Activities
Period
50 calendar days
65 calendar days
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Audit Activities
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registered mail
Philippine Bidding Documents for the
Procurement of Infrastructure Projects, 3rd
edition (October 2009) approved per GPPB
Resolution No. 05-2009 dated 30 September
2009:
23. Modification and Withdrawal of Bids
7.2.
A Bidder may, through a
7.3.
letter of withdrawal, withdraw its bid
after it has been submitted, for valid and
justifiable reason; provided that the letter
of withdrawal is received by the
Procuring Entity prior to the deadline
prescribed for submission and receipt of
bids.
Bids requested to be
7.4.
withdrawn in accordance with ITB Clause
23.1, shall be returned unopened to the
Bidders. A Bidder may also express its
intention not to participate in the bidding
through a letter which should reach and
be stamped by the BAC before the
deadline for submission and receipt of
bids. A Bidder that withdraws its bid
shall not be permitted to submit another
bid, directly or indirectly, for the same
contract.
No bid may be modified
7.5.
after the deadline for submission of bids.
No bid may be withdrawn in the interval
between the deadline for submission of
bids and the expiration of the period of
bid validity specified by the Bidder on the
Financial Bid Form. Withdrawal of a bid
during this interval shall result in the
forfeiture of the Bidders bid security,
pursuant to ITB Clause 18.5, and the
imposition of administrative, civil, and
criminal sanctions as prescribed by RA
9184 and its IRR.
Audit Activities
of Bids
24.3 Letters of withdrawal shall be read
out and recorded during bid opening, and
the envelope containing the corresponding
withdrawn bid shall be returned to the
Bidder unopened. If the withdrawing
Bidders representative is in attendance,
the original bid and all copies thereof shall
be returned to the representative during
the bid opening. If the representative is not
in attendance, the bid shall be returned
unopened by registered mail. The Bidder
may withdraw its bid prior to the deadline
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Audit Activities
the Answer
8. Compare the
Checklist for the first
envelope adopted by
the BAC with the list of
documents in the first
envelope per Bidding
Documents.
9. Determine if the
BACs entries in the
Checklist are complete.
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as stated in the Instructions to Bidders. If a
bidder submits the required document, it shall
be rated passed for that particular
requirement. In this regard, bids that fail to
include any requirement or are incomplete or
patently insufficient shall be considered as
failed. Otherwise, the BAC shall rate the
said first bid envelope as passed.
25.2. The first envelope shall contain the
Audit Activities
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and granted full power and authority to
do, execute and perform any and all acts
necessary and/or to represent the
prospective bidder in the bidding, with
the duly notarized Secretarys Certificate
attesting to such fact, if the prospective
bidder is a corporation, partnership,
cooperative, or joint venture;
(5) It complies with the disclosure provision
under Section 47 of the Act in relation to
other provisions of R.A. 3019;
(6) It complies with the responsibilities of a
prospective or eligible bidder provided in
the PBDs; and
(7) It complies with existing labor laws and
standards, in the case of procurement of
services.
23.1. For purposes of determining the
Audit Activities
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others, the prospective bidders total and
current assets and liabilities, stamped
received by the BIR or its duly
accredited and authorized institutions, for
the preceding calendar year which should
not be earlier than two (2) years from
the date of bid submission.
vi) The prospective bidders computation
for its Net Financial Contracting Capacity
(NFCC) or a commitment from a
Universal or Commercial Bank to extend
a credit line in favor of the prospective
bidder if awarded the contract to be bid
(CLC).
b) Class B Document
Valid joint venture Agreement (JVA), in
case the joint venture is already in
existence. In the absence of a JVA, duly
notarized statements from all the potential
joint venture partners stating that they will
enter into and abide by the provisions of
the JVA in the instance that the bid is
successful shall be included in the bid.
Failure to enter into a joint venture in the
event of a contract award shall be ground
for the forfeiture of the bid security. Each
partner of the joint venture shall submit the
legal eligibility documents. The submission
of technical and financial eligibility
documents by any of the joint venture
partners constitutes compliance.
27.1. All bids shall be accompanied by a bid
Audit Activities
g.1. In a Joint
Venture, any
partners NFCC or
CLC
h. Valid joint venture
Agreement (JVA),
in case the joint
venture is already
in existence.
In the absence
of a JVA, duly
notarized
statements from
all the potential
joint venture
partners stating
that they will enter
into and abide by
the provisions of
the JVA in the
instance that the
bid is successful?
i. The bid security in
the prescribed:
a. form?
b. amount?
c. validity
period?
j. Project
Requirements,
which shall
include:
a. Organizational
chart for the
contract to be
bid?
b. List of
contractors
personnel
(viz, Project
Manager,
Project
Engineers,
Materials
Engineers,
and
Foremen), to
be assigned
to the
contract to be
bid, with their
complete
qualification
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Amount of
Bid Security
(Equal to
Percentage
of the ABC)
Two
percent
(2%)
Five
percent
(5%)
Proportionate to share
of form
with respect
to total
amount of
security
Audit Activities
c.
and
experience
data?
List of
contractors
equipment
units, which
are owned,
leased, and/or
under
purchase
agreements,
supported by
certification of
availability of
equipment
from the
equipment
lessor/vendor
for the
duration of
the project?
k. Sworn statement
by the prospective
bidder or its duly
authorized
representative in
the form
prescribed by the
GPPB as to the
following:
(1) It is not
blacklisted or
barred from
bidding by the
GOP or any of
its agencies,
offices,
corporations, or
LGUs, including
foreign
government/
foreign or
international
financing
institution
whose
blacklisting rules
have been
recognized by
the GPPB?
(2) Each of the
documents
submitted in
satisfaction of
the bidding
requirements is
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a) If the bidder is an individual or a sole
proprietorship, to the bidder himself;
b) If the bidder is a partnership, to all its
officers and members;
c) If the bidder is a corporation, to all its
officers, directors, and controlling
stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c) of this
Section shall correspondingly apply to each
of the members of the said joint venture,
as may be appropriate
Audit Activities
an authentic
copy of the
original,
complete, and
all statements
and information
provided therein
are true and
correct?
(3) It is
authorizing the
Head of the
Procuring Entity
or his duly
authorized
representative/s
to verify all the
documents
submitted?
(4) The signatory
is the duly
authorized
representative
of the
prospective
bidder, and
granted full
power and
authority to do,
execute and
perform any and
all acts
necessary
and/or to
represent the
prospective
bidder in the
bidding, with
the duly
notarized
Secretarys
Certificate
attesting to such
fact, if the
prospective
bidder is a
corporation,
partnership,
cooperative, or
joint venture?
(5) It complies
with the
disclosure
provision under
Section 47 of
the Act in
relation to other
provisions of
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Audit Activities
the Answer
R.A. 3019?
(6) It complies
with the
responsibilities
of a prospective
or eligible bidder
provided in the
PBDs?
(7) It complies
with existing
labor laws and
standards, in
the case of
procurement of
services?
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Audit Activities
the Answer
Contract
Agreement?
a.3. Omnibus
Sworn
Statement?
If in the affirmative,
did the BAC decide
not to grant the
request?
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Audit Activities
the Answer
1. one representing
the COA?
2. One representing
the duly
recognized private
group in a sector
or discipline
relevant to the
procurement at
hand?
3. One representing
a non-government
organization?
4. With knowledge,
experience or
expertise in
procurement or in
the subject matter
of the contract to
be bid?
5. With no actual or
potential conflict
of interest in the
contract to be bid?
6. Conformed with
other relevant
criteria determined
by the BAC?
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Audit Activities
iii) and
b) The other observer shall come from a nongovernment organization (NGO).
13.2. The observers shall come from an
organization duly registered with the Securities
and Exchange Commission (SEC) or the
Cooperative Development Authority (CDA),
and should meet the following criteria:
a) Knowledge, experience or expertise in
procurement or in the subject matter of the
contract to be bid;
b) Absence of actual or potential conflict of
interest in the contract to be bid; and
c) Any other relevant criteria that may be
determined by the BAC.
13.3. Observers shall be invited at least
three (3) calendar days before the date
of the procurement stage/activity. The
absence of observers will not nullify the
BAC proceedings, provided that they
have been duly invited in writing.
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
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3. To communicate the results of the
audit with the auditees
Management
COA Circular No. 2009-006 dated September
Audit Activities
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To verify if the BAC followed the required timeline in the conduct of bid evaluation.
Audit Activities
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Audit Criteria
corrections of the financial
component of the bids in
the detailed evaluation
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
32.2.1 The BAC shall
b. Arithmetical corrections
Consider computational errors
and omissions to enable proper
comparison of all eligible bids.
It may also consider bid
modifications if expressly
allowed in the Bidding
Documents [AS AMENDED BY
Audit Activities
the bids?
Did the BAC consider
non-responsive and,
thus, automatically
disqualified bids not
addressing or providing
all of the required items
in the Bidding
Documents?
Did the BAC consider
non-responsive and,
thus, automatically
disqualified bids that did
not indicate the price
for a required item?
d. computational
errors?
e. omissions?
f. other bid
modification, if
allowed in the
Bidding Documents?
Audit Sub-objective
Audit Criteria
Audit Activities
Abstract of Bids as
Calculated, and Resolution
of the BAC declaring the
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Audit Activities
b. Location?
Section 32.3 After all bids have
been received, opened, examined,
evaluated, and ranked, the BAC shall
prepare the corresponding Abstract of
Bids. .The Abstract of Bids shall
contain the following:
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Audit Activities
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Audit Activities
the Answer
the BAC;
procurement or in
the subject matter of
the contract to be
bid?
e. With no actual or
potential conflict of
interest in the
contract to be bid?
f. Conformed with
other relevant
criteria determined
by the BAC?
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Audit Activities
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Audit Activities
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
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Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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X. POST-QUALIFICATION
FOR THE FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
The Lowest Calculated Bid (LCB) shall undergo post-qualification in order to determine
whether the bidder concerned complies with and is responsive to all the requirements and
conditions as specified in the Bidding Documents.
A. AUDIT OBJECTIVES:
1. To verify if the BAC adopted the required conditions and procedures in the conduct of
post-qualification;
2.
To verify if the BAC followed the required timeline in the conduct of post-qualification.
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Audit Criteria
1. To verify whether the bidder
whose bid was declared as the
Lowest Calculated Bid (LCB)/
Single Calculated Bid (SCB)
submitted the following
documents within 3 calendar
days from the bidders receipt
of the notice:
a) Tax clearance;
b) Latest income and business
tax returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses
and permits required by law
and stated in the Bidding
Documents
Audit Activities
the Answer
d. Certificate of
PhilGEPS
Registration?
a. submit within 3
calendar days
from receipt of
the notice as
LCB?
b. Tax Clearance?
c. Latest income
and business tax
returns?
e. Other
appropriate
licenses and
permits required
by law and
stated in the
Bidding
Documents?
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Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.2.Within three (3) calendar days
from receipt by the bidder of the
notice from the BAC that the bidder
has the Lowest Calculated Bid or
Highest Rated Bid, the bidder shall
submit the following documentary
requirements to the BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS Registration;
and
d) Other appropriate licenses and
permits required by law and stated
in the Bidding Documents.
Audit Activities
information?
a) DTI Registration
Certificate, duly supported
with:
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Audit Sub-objective
Audit Criteria
(75%) of the interest
belongs to citizens of the
Philippines, or
c. a Corporation duly organized
under the laws of the
Philippines, and of which at
least seventy five percent
(75%) of the outstanding
capital stock belongs to
citizens of the Philippines, or
d. Cooperatives duly organized
under the laws of the
Philippines, and of which at
least seventy five percent
(75%) belongs to citizens of
the Philippines, or
e. Joint Venture - that Filipino
ownership or interest of the
joint venture concerned shall
be at least seventy five
percent (75%)
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest Rated
Bid, using non-discretionary criteria,
as stated in the Bidding Documents.
These criteria shall consider, but
shall not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is not
included in any blacklist as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all blacklisted suppliers,
contractors, and consultants.
infrastructure projects:
23.5.2.1. The following
persons/entities shall be allowed to
participate in the bidding
for infrastructure projects:
a) Duly licensed Filipino citizens/sole
proprietorships;
Audit Activities
the SEC-certified
copy of the
Registration
Certificate,
if the bidder is a
partnership;
c. SEC registration and of
the 60% Filipino
ownership, duly
supported with:
SEC-certified copy of
the Registration
Certificate and
SEC-certified copy of
the Articles of
Incorporation
if the bidder is a
corporation.
d. CDA registration and of
the 75% Filipino
ownership, duly
supported with:
CDA-certified copy of
the Registration
Certificate and
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Audit Sub-objective
Audit Criteria
Audit Activities
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Technical Services Office
Special Services Sector
Commission on Audit
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Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest Rated
Bid, using non-discretionary criteria,
as stated in the Bidding Documents.
These criteria shall consider, but
shall not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is not
included in any blacklist as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all blacklisted suppliers,
contractors, and consultants.
Audit Activities
Mayors Permit
submitted by the
bidder was issued
by the city or
municipality where
the principal place
of business of the
bidder is located?
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
a. HOPE?
b. members of the
BAC?
c. members of the
TWG?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
b. members of the BAC,
c. members of the TWG,
d. members of the BAC
Secretariat,
e. head of the Project
Management Office (PMO),
f. head of the end-user unit,
g. project consultants
Section 47. Disclosure of Relations
All bids shall be accompanied by a
sworn affidavit of the bidder that it is
not related to the
Head of the Procuring Entity, members
of the BAC, the TWG, and the BAC
Secretariat, the
head of the PMO or the end-user unit,
and the project consultants, by
consanguinity or affinity up to the third
civil degree. Failure to comply with the
aforementioned provision shall be a
ground for the automatic
disqualification of the bid in consonance
with Section 30 of this IRR. For this
reason, relation to the
aforementioned persons within the
third civil degree of consanguinity
or affinity shall automatically
disqualify the bidder from
participating
in the procurement of contracts of
the procuring entity. On the part of
the bidder, this
provision shall apply to the following
persons:
a) If the bidder is an individual or a
sole proprietorship, to the bidder
himself;
b) If the bidder is a partnership, to all
its officers and members;
c) If the bidder is a corporation, to all
its officers, directors, and controlling
stockholders; and
d) If the bidder is a joint venture, the
provisions of items (a), (b), or (c) of
this Section shall correspondingly
apply to each of the members of the
said joint venture, as may be
appropriate
9. To verify if the BAC validated the
bidders stated competence and
experience
Audit Activities
9184;
b. all the officers and
members of the bidder
partnership are not
related to the persons
mentioned in Sec. 47,
Amended IRR of RA
9184;
c. all the officers, directors,
and controlling
stockholders of the
bidder corporation are
not related to the
persons mentioned in
Sec. 47, Amended IRR of
RA 9184.
d. members of the
BAC Secretariat?
e. head of the
Project
Management
Office (PMO)?
f. head of the enduser unit?
g. project
consultants?
a. within a period
of ten (10) years
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
34.3. The post-qualification shall
b) Technical Requirements. To
determine compliance of the goods,
infrastructure projects, or consulting
services offered with the
requirements specified in the Bidding
Documents, including, where
applicable:
i) Verification and validation of the
bidders stated competence and
experience, and the competence
and experience of the bidders key
personnel to be assigned to the
project, for the procurement of
infrastructure projects and
consulting services;
Audit Activities
OR
From the TWG report, as
reviewed by the BAC, and
the Minutes of BAC
meetings, check for
information showing the
BACs validation that for
contractors under Small A
and Small B categories
without similar experience
on the contract to be bid,
the cost of such contract is
not more than fifty percent
(50%) of the Allowable
Range of Contract Cost
(ARCC) of their registration
based on the guidelines as
prescribed by the PCAB.
Audit Sub-objective
Audit Criteria
Audit Activities
b) Technical Requirements. To
determine compliance of the goods,
infrastructure projects, or consulting
services offered with the
requirements specified in the Bidding
Documents, including, where
applicable:
b) Technical Requirements. To
determine compliance of the goods,
infrastructure projects, or consulting
services offered with the
requirements specified in the Bidding
Documents, including, where
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
applicable:
i)
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units to
be owned/leased/under purchase
by the bidder for use in the
contract under bidding,
as well as checking the
performance of the bidder in its
ongoing government and private
contracts (if any of these on-going
contracts shows a reported
negative slippage of at least
fifteen percent (15%), or
substandard quality of work as per
contract plans and specifications,
or unsatisfactory performance of
the contractors obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractors fault or negligence,
the agency shall disqualify the
contractor from the award), for
the procurement of infrastructure
projects;
iii)
iv)
12. To verify if the BAC checked
the performance of the bidder in
its on-going government and
private contracts for:
a. reported negative slippage of at
least fifteen percent (15%), or
b. substandard quality of work as
per contract plans and
specifications, or
c. unsatisfactory performance of
the contractors obligations as per
contract terms and conditions, at
the time of inspection,
and verified that the deficiencies
were due to the contractors fault
or negligence
a. reported negative
slippage of at least fifteen
percent (15%), or
b. substandard
quality of work as
per contract plans
and specifications?
or
b. substandard quality of
work as per contract plans
and specifications, or
c. unsatisfactory
performance of the
contractors
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
September 2, 2009:
34.3.
b) Technical Requirements. To
determine compliance of the goods,
infrastructure projects, or consulting
services offered with the
requirements specified in the Bidding
Documents, including, where
applicable:
Audit Activities
c. unsatisfactory
performance of the
contractors obligations as
per contract
and verified that the
deficiencies were due to the
contractors fault or
negligence.
obligations as per
contract?
and
d. verified that the
deficiencies were
due to the
contractors fault or
negligence?
i)
ii) as well as checking the
performance of the bidder in its
ongoing government and private
contracts (if any of these on-going
contracts shows a reported
negative slippage of at least
fifteen percent (15%), or
substandard quality of work as per
contract plans and specifications,
or unsatisfactory performance of
the contractors obligations as per
contract terms and conditions, at
the time of inspection, and if the
BAC verifies any of these
deficiencies to be due to the
contractors fault or negligence,
the agency shall disqualify the
contractor from the award),
for the procurement of
infrastructure projects;
iii)
iv)
satisfactory
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
14. To verify if the BAC
verified, validated, and
ascertained authenticity of the
bid security and its sufficiency
as to:
a. type,
b. amount,
c. form and wording, and
d. validity period.
Audit Activities
the Answer
b. amount?
c. form and
wording?
d. validity period?
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Commission on Audit
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Audit Sub-objective
Audit Criteria
c) Financial Requirements
To verify, validate and ascertain
the bid price proposal of the
bidder and, whenever applicable,
the required CLC in the amount
specified and over the period
stipulated in the Bidding
Documents, or the bidders NFCC
to ensure that the bidder can
sustain the operating cash flow of
the transaction.
Audit Activities
completed government
and private contracts,
including contracts
awarded but not yet
started, and
d. comparison with the
requirements.
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
If Yes, proceed
to: AWARD OF
CONTRACT.
If No, proceed to
the Audit SubObjectives in
case of Postdisqualificatio
n of the bidder
with the LCB.
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE LOWEST CALCULATED BID (LCB)
- FOR THE PROCUREMENT OF INFRASTRUCTURE PROJECTS
Did the BAC
17. To verify if the BAC, in case 1. From the records of the
BAC
Secretariat,
check
for
immediately notify
of post-disqualification of the
the
LCB of the
information
on
the
date
of
LCB immediately notified the
postreceipt by the postLCB in writing of the postdisqualification?
disqualified bidder of the
disqualification with the
notice of postgrounds for it.
disqualification and for the
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.5. If, however, the BAC
determines that the bidder with the
Lowest Calculated Bid fails the criteria
for post-qualification, it shall
immediately notify the said bidder in
writing of its post-disqualification and
grounds for it.
34.6. Immediately after the BAC has
notified the first bidder of its postdisqualification, and notwithstanding
any pending request for
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
For each postdisqualification of the
next-rank bidder, the
BAC is to repeat the
If Yes, proceed
to the Audit
Sub-objective to
verify if the
BAC declared
the post-
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
post-qualification
process until the
LCRB is declared for
award.
The related audit
activities are likewise
to be repeated.
qualified
second-rank
bidder as the
LCRB after a
request for
reconsideratio
n of the LCB
(first-rank,
second-rank,
or next-inrank, a the
case may be)
has been
denied
If No, proceed to
the Audit SubObjectives in
case of Postdisqualificatio
n of the bidder
with the LCB.
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Audit Sub-objective
Audit Criteria
LCRB after a request for
reconsideration of the LCB
(first-rank) has been denied
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.6. Immediately after the BAC
has notified the first bidder of its
post-disqualification, and
notwithstanding any pending
request for reconsideration thereof,
the BAC shall initiate and complete
the same post-qualification process
on the bidder with the second
Lowest Calculated Bid. If the second
bidder passes the post-qualification,
and provided that the request for
reconsideration of the first bidder
has been denied, the second bidder
shall be post-qualified as the bidder
with the Lowest Calculated
Responsive Bid.
Audit Activities
qualified second-rank bidder
as the LCRB after a request
for reconsideration of the
LCB (first-rank) has been
denied.
If the BAC
completed the
post-qualification in
more than seven
(7) calendar days,
was the extension
approved by the
HOPE?
If the BAC
completed the
post-qualification in
more than seven
(7) calendar days,
was the extension
within the 30calendar day
maximum?
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Audit Sub-objective
Audit Criteria
a sector or discipline relevant to
the procurement at hand, and a
non-government organization
(NGO) from the procuring
entitys Pool of Observers;
b. that have:
b.1. knowledge, experience or
expertise in procurement or in
the subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria determined by
the BAC;
Audit Activities
the Answer
a. one
representing the
COA?
b. One
representing the
duly recognized
private group in
a sector or
discipline
relevant to the
procurement at
hand?
c. One
representing a
non-government
organization?
d. With knowledge,
experience or
expertise in
procurement or
in the subject
matter of the
contract to be
bid?
e. With no actual
or potential
conflict of
interest in the
contract to be
bid?
f. Conformed with
other relevant
criteria
determined by
the BAC?
34. From certified copies of
the invitations to the
Observers with evidence of
receipt, compare the date of
receipt with the 3-day
minimum requirement.
Audit Sub-objective
Audit Criteria
Audit Activities
following responsibilities:
a) To prepare the report either jointly
or separately indicating their
observations made on the
procurement activities conducted by
the BAC for submission to the Head
of the Procuring Entity, copy
furnished the BAC Chairman. The
report shall assess the extent of the
BACs compliance with the provisions
of this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a copy
to the GPPB and Office of the
Ombudsman/Resident Ombudsman.
If no report is submitted by the
observer, then it is understood
that the bidding activity
conducted by the BAC followed
the correct procedure; and
c) To immediately inhibit and notify in
writing the procuring entity
concerned of any actual or potential
interest in the contract to be bid.
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Audit Sub-objective
Audit Criteria
Audit Activities
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
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Audit Sub-objective
Audit Criteria
Audit Activities
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results
of the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Republic of the Philippines
A. AUDIT OBJECTIVES:
1. To verify if the conditions/requirements and procedures for the award of contract were
adhered to by the procuring entity;
2. To verify if the award was made within the prescribed period;
3. To verify if the conditions/requirements, procedures and timelines for entering into and
approval of the contract were adhered to by the procuring entity.
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for the evaluation:
1. Minutes of the BAC meetings on post-qualification;
2. BAC Resolution declaring the LCRB/SCRB and recommending award, approved by the HOPE,
with the following supporting documents:
a. Abstract of Bids,
b. Duly approved program of work and Cost Estimates,
c. Document issued by appropriate entity authorizing the procuring entity to incur
obligations for a specified amount,
d. Other pertinent documents required by existing laws, rules and/or the procuring
entity concerned.
3. Notice of Award signed by the HOPE, with date of release to and receipt by the winning
bidder;
4. Copy of the bid security of the winning bidder stamped received by the BAC Secretariat;
5. Copy of the portions of the receiving records of the BAC, with information on the date of
submission of the Joint Venture Agreement (JVA), if the winning bidder is a Joint Venture;
and the date of posting of the performance security;
6. Copy of the performance security posted by the winning bidder;
7. Copy of the complete set of contract documents duly signed and approved by higher
authorities;
8. Copy of the policy and schedule of approving authorities;
9. Evidences of postings at the PhilGEPS and the procuring entitys websites;
10. Evidences of postings at the conspicuous place at the premises of the procuring entity;
11. Copy of the Minutes of the BAC meeting on the selection of the Observer from the
pool;
12. Copy of reports of the BAC Observers;
13. Copy of the document with the HOPEs disapproval of the award and the justifications
thereto, duly received by the BAC;
14. In case of disapproval of the BACs recommendation for award, copy of the document
with the HOPEs instructions on the steps to be adopted by the BAC.
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
recommended the bidder
with the Lowest Calculated
Responsive Bid (LCRB) or
Single Calculated Responsive
Bid (SCRB), if lone, to the
HOPE for award
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.1. The BAC shall recommend
to the Head of the Procuring Entity
the award of contract to the bidder
with the Lowest Calculated
Responsive Bid or the Single
Calculated Responsive Bid after the
post qualification process has been
completed.
Audit Activities
Resolution.
.
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
e. Other pertinent
documents required
by existing laws,
rules and/or the
procuring entity
concerned?
Audit Sub-objective
Audit Criteria
Audit Activities
5. In case of approval, to
verify if the Notice of Award
was issued to the winning
bidder immediately and
within the validity period of
the bid security
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.3. In case of approval, the
Head of the Procuring Entity shall
immediately issue the Notice of
Award to the bidder with the
Lowest Calculated Responsive Bid.
In the event the Head of the
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in writing,
a copy furnished the BAC.
Audit Sub-objective
Audit Criteria
Audit Activities
a. PhilGEPS website?
b. website of the
procuring entity? And
c. any conspicuous
place in the premises
of the procuring
entity?
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
the Notice of Award & prior
to the signing of the
contract in the required
amount, currency, form,
issuing entity, and valid
until the issuance by the
procuring entity of the final
certificate of acceptance,
c) Signing of the contract
within the same ten (10)
day period provided that
all the documentary
requirements are complied
with,
d) Approval by higher
authority, if required,
within 15 days from receipt
(25 days for GOCCs)
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.4. Notwithstanding the
issuance of the Notice of Award,
award of contract shall be subject
to the following conditions:
a) Submission of the following
documents within the
prescribed period:
i) Valid JVA, if applicable,
within ten (10) calendar
days from receipt by the
bidder of the notice from the
BAC that the bidder has the
Lowest Calculated
Responsive Bid, as the case
may be; or
ii) In case of infrastructure
projects, valid PCAB license
and registration for the type
and cost of the contract to
be bid for foreign bidders,
within 30 calendar days
from receipt by the bidder of
the notice from the BAC that
the bidder has the LCRB,
when the treaty or
international or executive
agreement expressly allows
submission of the PCAB
license and registration for
the type and cost of the
contract to be (sic) as a precondition to the notice of
award.
Audit Activities
If further approval by
higher authority is
required, was the
contract approved by
appropriate approving
authority or his/her duly
authorized
representative?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
e) Posting of performance
security in accordance with
Section 39 of this IRR;
f) Signing of the contract as
provided in Section 37.2 of this
IRR;
g) Approval by higher authority, if
required, as provided in
Section 37.3 of this IRR.
39. Performance Security
39.1. To guarantee the faithful
performance by the winning bidder
of its obligations under the contract
in accordance with the Bidding
Documents, it shall post a
performance security prior to the
signing of the contract.
39.2. The performance security
shall be in an amount equal to a
percentage of the total contract
price in accordance with the
following schedule: [AS AMENDED
UNDER GPPB RESOLUTION NO. 062009 DATED 30 SEPTEMBER 2009]
Form of Performance
Security
a) Cash, cashiers/
managers check
issued by a Universal
or Commercial Bank
b) Bank draft/
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank, if
issued by a foreign
bank.
c) Surety bond callable
upon demand issued
by a surety or
insurance company
duly certified by the
Insurance Commission
as authorized to issue
such security.
d) Any combination of
the foregoing.
Amount of
Performance
Security (Equal
to Percentage of
the Total
Contract Price
Two percent
(2%)
Five percent
(5%)
Proportionate
to share of
form with
respect to
total amount
of security
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
f) Notice of Award of Contract; and
g) Other contract documents that
may be required by existing laws
and/or the procuring entity
concerned in the Bidding
Documents, such as the
construction schedule and Scurve, manpower schedule,
construction methods, equipment
utilization schedule, construction
safety and health program
approved by the Department of
Labor and Employment, and
PERT/CPM for infrastructure
projects.
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
documenting
the
factthrough his fault, failed,
b. forfeited the bid security of
refused or was unable
finding to establish if
and
to:
the winning bidder was
c. recommended the
a. submit the
responsible for his
imposition of sanctions to
documents required
failure, refusal, or
the winning bidder who,
through his fault, failed,
refused or was unable:
a. to submit the documents
required under Section
37.1 of the Revised IRR of
RA 9184, or
b. to make good its bid by
entering into a contract
with the procuring entity,
or
c. post the required
Performance Security
within the period
stipulated in the Revised
IRR of RA 9184 or in the
Bidding Documents
disqualification of the
said bidder,
forfeiture of the bid
security and
recommendation of the
imposition of sanctions
or
b. to make good its bid
by entering into a
contract with the
procuring entity?
or
c. post the required
Performance
Security within the
period stipulated in
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
Did the BAC forfeit the
bid security of the
winning bidder who,
through his fault, failed,
refused or was unable
to:
a. submit the
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
submit the documents required
under Section 37.1 of this IRR or
to make good its bid by entering
into a contract with the procuring
entity or post the required
Performance Security within the
period stipulated in this IRR or in
the Bidding Documents, the bid
security shall be forfeited and the
appropriate sanctions provided in
this IRR and existing laws shall be
imposed, except where such
failure, refusal or inability is
through no fault of the said
bidder.
Audit Activities
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
September 2, 2009:
40.2. In the case of the failure,
refusal or inability of the bidder
with the Lowest Calculated
Responsive Bid to submit the
documents required under Section
37.1 of this IRR or to enter into
contract and post the required
Performance Security, as provided
in this Section, the BAC shall
disqualify the said bidder, and shall
initiate and complete the postqualification process on the bidder
with the second Lowest Calculated
Bid:....This procedure shall be
repeated until the Lowest
Calculated Responsive Bid/Highest
Rated Responsive Bid is
determined for award. However, if
no bidder passes postqualification, the BAC shall declare
the bidding a failure and conduct a
re-bidding with re-advertisement.
Should there occur another failure
of bidding after the conduct of the
contracts re-bidding, the procuring
entity concerned may enter into a
negotiated procurement.
NOTE:
For the audit on the
Post-Qualification for
the Procurement of
Infrastructure
Projects conducted by
the BAC, perform the
audit activities
pertaining to these
procurement
activities in another
part of this Guide.
NOTE:
For the audit on the
Failure of Bidding for
the Procurement of
Infrastructure
Projects and on the
Competitive/ Public
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
post the required Performance
Security, as provided in this
Section, the BAC shall disqualify
the said bidder, and shall declare
the bidding a failure and conduct a
re-bidding with re-advertisement
and/or posting, as provided for in
Sections 21 and 25 of this IRR.
Should there occur another failure
of bidding after the conduct of the
contracts re-bidding, the procuring
entity concerned may enter into a
negotiated procurement.
the Answer
Audit Activities
one representing
the COA?
b.
one representing
the duly
recognized private
group in a sector
or discipline
relevant to the
procurement at
hand?
c.
one representing a
non-government
organization?
d.
with knowledge,
experience or
expertise in
procurement or in
the subject matter
of the contract to
be bid?
e.
With no actual or
potential conflict
of interest in the
contract to be bid?
f.
Conformed with
other relevant
criteria determined
by the BAC?
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
declared a failure of bidding
for reason that:
a) No bids were received; or
b) All prospective bidders
were declared ineligible; or
c) All bids failed to comply
with all the bid
requirements, or
d) all bids failed postqualification, or
e) the bidder with the
Lowest Calculated
Responsive Bid refused,
without justifiable cause,
to accept the award of
contract, and no award
was made in accordance
Audit Question
Yes
No
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
with Section 40 of the RA
9184 and Revised IRR
e) funds are not available
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
35.1. The BAC shall declare the
Audit Question
Yes
No
the Lowest
Calculated
Responsive Bid
refused, without
justifiable cause,
to accept the
award of contract,
and no award was
made in
accordance with
Section 40 of the
RA 9184 and
Revised IRR?
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
b. conditions in the
Bidding
Documents?
c. specifications in the
Bidding
Documents?
d. cost estimates?
4. From the records of the
BAC look for information on
the re-bidding conducted.
NOTE:
For the audit on the rebidding conducted
perform the audit using
the portion of this
Guide on
Competitive/Public
Bidding for the
Procurement of
Infrastructure Projects.
Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
1. one representing
the COA?
2. One representing
the specific
relevant the duly
recognized private
group in a sector or
discipline relevant to
the procurement at
hand?
3. One representing
a non-government
organization?
4. With knowledge,
experience or
expertise in
procurement or in
the subject matter of
the contract to be
bid?
5. With no actual or
potential conflict of
interest in the
contract to be bid?
6. Conformed with
other relevant
criteria determined
by the BAC?
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Particulars of
the Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars of
the Answer
appropriate audit
recommendations.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
including any act which
restricts, suppresses or
nullifies or tends to
restrict, suppress or nullify
competition;
or
c. the BAC is found to have
failed in following the
prescribed bidding
procedures;
or
d. the award of the contract
will not redound to the
benefit of the GOP, for
justifiable and reasonable
grounds such as: (i) if the
physical and economic
conditions have
significantly changed so as
to render the project no
longer economically,
financially, or technically
feasible, as determined by
the Head of the Procuring
Entity; (ii) if the project is
no longer necessary as
determined by the Head of
the Procuring Entity; and
(iii) if the source of funds
for the project has been
withheld or reduced
through no fault of the
procuring entity.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Section 41. The Head of the
Audit Activities
the Answer
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Head of the
Procuring Entity?
OR
h. the award of the
contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the project is
no longer necessary
as determined by the
Head of the
Procuring Entity?
OR
i. the award of the
contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?
appropriate audit
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Special Services Sector
Commission on Audit
Republic of the Philippines
ALTERNATIVE METHODS
OF PROCUREMENT FOR
INFRASTRUCTURE PROJECTS
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Commission on Audit
Republic of the Philippines
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
AFTER TWO (2) FAILED BIDDINGS
Negotiated Procurement is a method of procurement of infrastructure projects whereby
the procuring entity directly negotiates a contract with a technically, legally, and financially
capable contractor.
Cases when negotiated procurement are allowed:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Two Failed Biddings (there has been failure of public bidding for the second time),
Emergency Cases,
Take-Over of Contracts,
Adjacent or Contiguous,
Agency-to-Agency,
Small Value Procurement,
NGO Participation,
Community Participation.
Audit Activities
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
appropriate audit
recommendations.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
1. From the
documentation of the
earlier two (2) biddings
conducted, look for
information on the BACs
declaration that there
have been two (2) failed
biddings.
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
recommendation to the
HOPE for approval.
Section 17 of the
Implementing Rules and
Regulations of RA 9184 as
amended on September 2,
2009:
Philippine Bidding
Documents for the
Procurement of
Infrastructure Projects and
Section 17.1 of the
Implementing Rules and
Regulations of RA 9184,
If the customized
Bidding Documents are not
compliant, compare the
procurement-specific
Bidding Documents with
the Philippine Bidding
Revised Approved
Budget for the
Contract?
Eligibility
Requirements?
o.
Instruction to
Bidders, including
- scope of bid?
- documents
comprising the
bid?
- criteria for
eligibility?
- price quotations
evaluation
methodology/
criteria?
- post-qualification
methodology?
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Audit Sub-objective
Audit Criteria
e.
f.
g.
h.
i.
1.
Audit Activities
the Answer
p.
Scope of work?
q.
Plans/Drawings
and Technical
Specifications?
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
documents comprising the bid,
criteria for eligibility, bid
evaluation methodology/criteria
in accordance with the Act, and
post-qualification, as well as the
date, time and place of the prebid conference (where
applicable), submission of bids
and opening of bids;
e. Scope of work, where
applicable;
f. Plans/Drawings and Technical
Specifications;
g. Form of Bid, Price Form, and Bill
of Quantities;
h. Completion Schedule;
i. Form, Amount, and Validity
Period of Bid Security;
[REVISED BY the Revised IRR of
RA 9184, item 54.4. Except for
Audit Activities
the Answer
r.
s.
Completion
Schedule?
t.
Form of Contract
and General and
Special Conditions
of Contract?
b.
Instructions to
Bidders?
c.
Price Quotation
Data Sheet?
d.
General Conditions
of the Contract?
e.
Special Conditions
of Contract?
f.
Schedule of
Requirements?
g.
Technical
Specifications?
h.
Price Quotation
Forms?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To verify the causes of
instances of non-compliance
and develop appropriate
audit recommendations
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
conducted the PreProcurement Conference
prior to the posting or the
issuance of the Invitation or
Pre-Procurement
Conference and compare
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
2. To verify if the participants
to the Pre-Procurement
Conference included the BAC,
the Secretariat, the unit or
officials, including
consultants hired by the
procuring entity, who
prepared the Bidding
Documents and the draft
Request for Submission of
Price Quotation
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. The pre-procurement
conference shall be attended by
the BAC, the Secretariat, the unit
or officials, including consultants
hired by the procuring entity, who
prepared the Bidding Documents
and the draft Invitation to Bid, for
each procurement.
Audit Question
Pre-Procurement
Conference look for
information on the
presentation of the scope
of the contract, the ABC,
and contract duration, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
description of the scope of
the contract, that there
was no splitting, the ABC,
and the contract duration.
a.
BAC?
b.
Secretariat?
c.
unit or officials
who prepared
the Bidding
Documents and
the draft
Request for
Submission of
Price Quotation?
d.
consultants
hired by the
procuring entity,
who prepared
the Bidding
Documents and
the draft
Request for
Submission of
Price Quotation?
Yes
No
Description of
the scope of the
contract?
b.
c.
Revised ABC?
d.
Contract
duration?
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
plan (PPMP) and annual
procurement plan (APP);
c. Discussed relevant
information and confirmed
readiness of the procurement
at hand on the following:
c.1. the availability of
appropriations and
programmed budget for
contract;
c.2. completeness of the
Bidding Documents and
their adherence to relevant
general procurement
guidelines;
c.3. completion of the
detailed engineering
according to the prescribed
standards in the case of
infrastructure projects;
c.4. confirmation of the
availability of ROW and the
ownership of affected
properties.
d. Reviewed, modified and
agreed on the criteria for
eligibility screening,
evaluation, and postqualification;
e. Reviewed and adopted
the procurement schedule,
including deadlines and
timeframes, for the different
activities;
f. Reiterated and
emphasized the importance
of confidentiality and the
applicable sanctions and
penalties, as well as agreed
on measures to ensure
compliance with the
foregoing;
g. Confirmed that there was
no splitting; and
Audit Activities
5. From the Minutes of
Pre-Procurement
Conference look for
information on the
presentation of the review
of the PPMP and APP, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
procurement is in
accordance with the PPMP
and APP.
Pre-Procurement
Conference look for
information on the
presentation of
information, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
readiness of the
procurement at hand as
to:
a. availability of
appropriations and
programmed budget
for the contract,
b. completeness of the
Bidding Documents
and their adherence to
the Philippine Bidding
Documents (PBDs)/
customized Bidding
Documents,
c. completion of the
detailed engineering
according to the
prescribed standards;
d. availability of ROW and
the ownership of
affected properties.
Yes
No
a. availability of
appropriations and
programmed
budget for the
contract?
b. completeness of
the Bidding
Documents?
c. adherence of the
Bidding
Documents with
the PBDs/
customized
Bidding
Documents?
d. completion of the
detailed
engineering
according to the
prescribed
standards?
e. availability of ROW
and the ownership
of affected
properties?
h. identified the
justification for the change in
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
No
Yes
Pre-Procurement
Conference look for
information on the
presentation of the criteria
for eligibility screening,
price quotation evaluation,
and post-qualification, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the criteria
for eligibility screening,
price quotation evaluation,
and post-qualification.
8. From the Minutes of
Pre-Procurement
Conference look for
information on the
presentation of the
procurement schedule,
including deadlines and
timeframes for the
different activities, the nocontact rule, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
adoption of the
procurement schedule
including deadlines and
timeframes for the
different activities.
Eligibility
screening?
b.
Price Quotation
evaluation?
c.
Postqualification?
---------------------------------------------------------------------------------------------------------Prepared by:
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
e.
f.
information on the
reiteration and emphasis
of the importance of
confidentiality and the
applicable sanctions and
penalties, as well as the
agreement on measures
to ensure compliance.
Audit Question
Yes
No
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
commencement of any
procurement activity.
Thus, the MYOA shall be a
pre-requisite for procurement of
a multi-year contract. All
procurement activities should be
within the total project cost and
categories reflected in the
MYOA issued by DBP for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I,
Book V of the Administrative
Code of 1987, no contract
involving the expenditure of
public funds shall be entered
into unless the proper
accounting official of the
procuring entity shall have
certified as to the availability of
funds and the allotment to
which the expenditure or
obligation may be properly
charged.
Definition:
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Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
and develop appropriate
audit recommendations
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if through a
Resolution the BAC presented
two (2) failed biddings as the
justification for the negotiated
procurement and recommended
the change in the mode of
procurement to the HOPE for
approval
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
1. From the BAC
Resolution, look for
information on the BACs
justification, that is, two
failed biddings and the
recommendation for the
change in the mode of
procurement to the HOPE
for approval.
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
2. To verify if the BAC:
a. recommended the alternative
mode of procurement:
Negotiated Procurement to the
HOPE,
and
b. the HOPE approved the
alternative method of
procurement
Audit Activities
2. From the BAC Resolution
recommending Negotiated
Procurement as the method
of procurement, look for
the approval of the HOPE.
No
Particulars
of the
Answer
Yes
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
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Audit Sub-objective
Audit Criteria
Audit Activities
Audit Question
Yes
No
Particulars
of the
Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
3. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
Price Quotations
Submission of Price
Quotations
continuously in
the:
1. PhilGEPS
website for 7
calendar days
starting on the
date of
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Answer
OR
From the printouts of the
web pages indicating the
dates of printing, obtained
from and duly certified by
the BAC Secretariat as true
and correct, compare these
dates with the required
dates of posting.
6. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
7. Conduct ocular inspection
on the first day of posting.
8. Repeat the ocular
inspections (may be at
random) during the 7-day
period to verify the postings.
9. Request for the
certification of the head of
the BAC Secretariat.
advertisement?
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Audit Activities
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed
with particular attention given to compliance by the BAC of the following
provisions of the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on a
specified date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such best
and final offers which should meet the procuring entitys minimum technical
requirements and should not exceed the ABC.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
EMERGENCY CASES
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated
the existence of an emergency as
follows:
a. imminent danger to life or
property during a state of
calamity, or
b. time is of the essence arising
from natural or man-made
calamities or other causes
where immediate action is
necessary to prevent damage
to or loss of life or property, or
to restore vital public services,
infrastructure facilities and
other public utilities
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
September 2, 2009:
Yes
No
action is
necessary to
prevent damage
to or loss of life
or property, or
to restore vital
public services,
infrastructure
facilities and
other public
utilities?
Audit Question
Negotiated
Procurement as the
method of
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Yes
No
Particulars
of the
Answer
procurement?
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
TAKE-OVER OF CONTRACTS
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the contract for the
project has been terminated or
rescinded; and
b. there is a need for immediate
action to prevent damage to or
loss of life or property, or to
restore vital public services,
infrastructure facilities and
other public utilities
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
4. To communicate the results of
the audit/ validation with
management
COA Circular No. 2009-006 dated
Audit Activities
4. Prepare the appropriate
audit/ validation document
reflecting the results of the
audit/validation and transmit
to management
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Activities
NOTES:
If negotiation
prospered, proceed to
Post-qualification
then Award using the
Audit Guide for
Competitive/ Public
Bidding for
Infrastructure
Projects.
If negotiation failed,
proceed to the next
audit Sub-objective.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
WHEN NEGOTIATION WITH THE SECOND LCB FOR THE PROJECT FAILED
When the
1. When the negotiation with 1. From the Minutes of the
BAC meetings, TWG
negotiation with
the second LCB failed, to
evaluation reports with
the second LCB
verify if the BAC negotiated
supporting documents duly
failed, did the BAC
the contract with the bidder
reviewed by the BAC, look
negotiate the
with the third lowest
for information on the
contract with the
calculated bid for the project
BACs negotiations.
third lowest
under consideration at the
calculated bid at
bidders original bid price
the bidders
original price?
NOTES:
If negotiation prospered,
proceed to Postqualification then
Award using the Audit
Guide for Competitive/
Public Bidding for
Infrastructure Projects.
If negotiation failed,
proceed to the next audit
Sub-objective.
WHEN NEGOTIATION WITH THE THIRD LCB FOR THE PROJECT FAILED
1. From the Minutes of the
1. To verify if the BAC used
the Procuring Entitys registry BAC meetings, TWG
evaluation reports
of contractors (bona fide
contractors licensed with the CIAP supported with copies of
the Procuring Entitys
whose eligibility documents are
Registry of Contractors
on file with the Procuring Entity
and/or the DPWH
concerned) or the Department
Contractors Registry, look
of Public Works and
for information on the basis
Highways (DPWH)
of identification of the
contractors to be invited for
Contractors Registry, and
the negotiations and the
who have been classified
shortlist of identified
under the type of
contractors.
contract/project where the
subject contract falls as basis
for preparing the shortlist of
contractors to be invited for
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
the negotiations
NOTE:
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
negotiation shall be done with
the third lowest calculated/
highest rated bidder at his
original price. If the negotiation
fails again, a short list of at least
three (3) eligible contractors
shall be invited to submit their
bids, and negotiation shall be
made starting with the lowest
calculated/highest rated bidder.
Audit Activities
QUESTION:
What will happen if
after negotiation which
prospered, the bidder
was post-disqualified?
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for the
Procurement of Infrastructure Projects (May 2006) published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission
of bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
ADJACENT OR CONTIGUOUS
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement (Adjacent
or Contiguous) was in accordance with rules and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING
PAPER
Documents needed for evaluation:
3. copy of the approved minutes of BAC meetings duly certified by the BAC Secretariat;
4. BAC Resolution recommending negotiated procurement, duly approved by the
HOPE.
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated
that:
a. the project is adjacent or
contiguous to an on-going
Infrastructure Project;
Audit Question
Yes
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
mobilization cost;
f. the amount involved does not
exceed the amount of the
ongoing project;
g. the contractor has no
negative slippage/delay;
h. the negotiations for the
procurement are commenced
before the expiry of the
original contract.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Yes
c. the subject
contract to be
negotiated has
similar or related
scopes of work;?
d. it is within the
contracting
capacity of the
contractor?
e. the contractor uses
the same prices or
lower unit prices
as in the original
contract less
mobilization cost?
f. the amount
involved does not
exceed the
amount of the
ongoing project?
g. the contractor has
no negative
slippage/delay?
h. the negotiations
for the
procurement are
commenced
before the expiry
of the original
contract?
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Procurement
(Adjacent or
Contiguous) as the
method of
procurement?
Audit Sub-objective
Audit Criteria
resulting contract;
b. validity of any payment to be
made on the basis of the
contract;
c. etc.
and develop appropriate audit
recommendations
Audit Question
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
NOTES:
If negotiations
prospered, proceed to
Award using the Audit
Guide for Competitive/
Public Bidding for
Infrastructure Projects.
If negotiations failed,
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the project is to be
subjected to
competitive/public
bidding. For the audit,
adopt the Audit Guide
for Competitive/Public
Bidding for
Infrastructure Projects.
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Audit Activities
the Answer
Prepare the appropriate audit/
validation document reflecting
the results of the
audit/validation and transmit
to Management
NOTES:
1. Based on the following requirement of the Generic Procurement Manual for
the Procurement of Infrastructure Projects (May 2006) published by the GPPB:
o
for the rest of the procurement procedures, the Audit Guide on the
Procedures: Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2,
2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR,
submission of bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR INFRASTRUCTURE PROJECTS
AGENCY-TO-AGENCY
Negotiated Procurement is a method of procurement of infrastructure projects
whereby the procuring entity directly negotiates a contract with a technically, legally, and
financially capable contractor in any of the following cases: (1) Two Failed Biddings, (2)
Emergency Cases, (3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-toAgency, (6) Small Value Procurement, (7) NGO Participation, (8) Community Participation.
Procurement of infrastructure projects from another agency of the GOP.
For purposes of this Section 53.5 of the Revised IRR of RA 9184, the term agency
excludes GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the
Corporation Code of the Philippines. The GPPB shall issue guidelines to implement this
provision
NOTE:
No Audit Guide has been developed for this alternative method of
procurement since no Guidelines has as yet been issued by the GPPB.
---------------------------------------------------------------------------------------------------Prepared by:
-----Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF INFRASTRUCTURE PROJECTS
COMMUNITY PARTICIPATION
Negotiated Procurement is a method of procurement of infrastructure projects whereby
the procuring entity directly negotiates a contract with a technically, legally, and financially
capable contractor in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases,
(3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Small Value
Procurement, (7) NGO Participation, (8) Community Participation.
Audit Sub-objective
Audit Criteria
1. To verify if the BAC:
a. validated the justification for
adoption of the alternative
method of procurement:
Negotiated Procurement
Community Participation,
that is, in the interest of
project sustainability or to
achieve certain specific
social objectives,
b.
c.
through a Resolution
recommended said method
to the HOPE for approval
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
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Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
2. To verify if the HOPE
approved the alternative method
of procurement: Negotiated
Procurement
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Audit Activities
2. From the BAC Resolution
recommending the
negotiated procurement as
an alternative method, look
for the approval of the
HOPE.
Yes
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR INFRASTRUCTURE PROJECTS
SMALL-VALUE PROCUREMENT
Negotiated Procurement is a method of procurement of infrastructure projects whereby
the procuring entity directly negotiates a contract with a technically, legally, and financially
capable contractor in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases,
(3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Small Value
Procurement, (7) NGO Participation, (8) Community Participation.
Small-Value Procurement - Where the amount of procurement does not exceed the
thresholds prescribed in Annex H of the IRR, RA 984, the procuring entity shall draw up a list of
at least three (3) contractors of known qualifications which will be invited to submit proposals.
The thresholds for this method of procurement are:
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
b) For LGUs, in accordance with the following schedule:
DOF Classification of LGUs
1st Class
2nd Class
3rd Class
4th Class
5th Class
6th Class
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the original mode of
procurement per APP was
public bidding but cannot be
ultimately pursued;
and,
b. the existence of the conditions
to justify Small-Value
Procurement and the amount
involved did not exceed the
thresholds in Annex H of the
Revised IRR of RA 9184.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Yes
No
a.
b. Small Value Procurement of
goods, infrastructure projects, and
consulting services under 53.9 of the
IRR.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Yes
No
Particulars
of the
Answer
approve Small-Value
Procurement as the
method of
procurement?
Audit Question
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
validated that there was no
splitting
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Did the
procurement unit
of the Procuring
Entity obtain price
quotations from at
least 3 bona fide
contractors?
Did the
procurement unit
of the Procuring
Entity post the
notice of award in:
a. the PhilGEPS
for a period of 7
calendar days?
b. the website of
the procuring
entity for a
period of 7
calendar days?
c. any
conspicuous
place in the
premises of the
procuring entity
for a period of 7
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
1. . . .
calendar days?
2. . . .
3. Procedural Guidelines
1. . . .
2. . . .
3. Procedural Guidelines
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations?
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations after
the deadline for
submission of price
quotations?
Did the
procurement unit
of the Procuring
Entity determine
the lowest
quotation?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Guidelines for Shopping and Small
Value Procurement covered by GPPB
Resolution No. 09-2009, dated 23
November 2009:
1. . . .
2. . . .
3. Procedural Guidelines
Audit Activities
the RFQ?
a. the PhilGEPS?
b. the website of
the procuring
entity?
c. any
conspicuous
place in the
premises of
the procuring
entity?
1. . . .
2. . . .
3. Procedural Guidelines
Audit Sub-objective
Audit Criteria
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT FOR INFRASTRUCTURE PROJECTS
NGO PARTICIPATION
Negotiated Procurement is a method of procurement of infrastructure projects whereby
the procuring entity directly negotiates a contract with a technically, legally, and financially
capable contractor in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases,
(3) Take-Over of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Small Value
Procurement, (7) NGO Participation, (8) Community Participation.
NGO Participation When an appropriation law or ordinance earmarks an amount to be
specifically contracted out to Non-Governmental Organizations (NGOs), the procuring entity may
enter into a Memorandum of Agreement with an NGO, subject to guidelines to be issued by the
GPPB.
NOTE:
No Audit Guide has been developed for this method of procurement
since no guidelines has yet been issued by the GPPB.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
COMPETITIVE / PUBLIC BIDDING FOR THE
PROCUREMENT OF CONSULTING SERVICES
I. PREPARATORY ACTIVITY: BIDDING DOCUMENTS
Bidding documents are documents issued by the Procuring Entity to provide prospective
bidders all the necessary information that they need to prepare their bids.
A. AUDIT OBJECTIVE:
To verify if the Bidding Documents for the specific procurement followed the standard
forms and manuals prescribed by the Government Procurement Policy Board (GPPB)
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. The procuring entitys Customized Bidding Documents for Consulting Services;
2. Bidding Documents for the specific procurement.
Audit Sub-objective
Audit Criteria
1. To verify if the Bidding
Documents for the specific
procurement include the forms
and information/contents
indicated in the Philippine
Audit Activities
the Answer
Philippine Bidding
Documents for the
Procurement of Consulting
Services, 3rd Edition
(October 2009) issued by
the GPPB using the audit
matrix for the Element
Customized Bidding
Approved
Budget for the
Contract?
b.
Request for
Expression of
Interest?
c.
Eligibility
Requirements?
d.
Instruction to
Bidders,
including
- scope of bid?
- documents
comprising the
bid?
- criteria for
eligibility?
- bid
evaluation/
methodology/
criteria?
- post-
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
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Audit Sub-objective
Audit Criteria
manuals prescribed by the GPPB.
17.1. The Bidding Documents
shall include the following:
a) Approved Budget for the
Contract (ABC);
b) Request for Expression of
Interest;
c) Eligibility Documents/
Requirements;
d) Eligibility Data Sheet;
e) Instructions to Bidders,
including documents comprising
the bid, criteria for eligibility, bid
evaluation methodology
(Quality-Based or Quality-Cost
Based)/criteria, and postqualification, as well as the
date, time and place of the prebid conference (where
applicable), submission of bids
and opening of bids;
f) Bid Data Sheet;
g) Terms of Reference;
h) Scope of Services;
i) Form of Bid (Technical and
Financial Proposal Forms);
j) Completion Schedule;
k) Form, Amount, and Validity
Period of Bid Security;
l) Form, Amount, and Validity of
Performance Security; and
m) Form of Contract and General
and Special Conditions of
Contract
Audit Activities
the Answer
qualification
methodology?
- date of the
pre-bid
conference, if
applicable?
- time of the prebid conference,
if applicable?
- Place of the
pre-bid
conference, if
applicable?
- Deadline for
submission of
bids?
- Place of
submission of
bids?
- Date of
opening of
bids?
- Time of
opening of
bids?
- Place of
opening of
bids?
e.
Terms of
Reference?
f.
Form of Bid?
g.
Completion
Schedule?
h.
Form, Amount,
and Validity
Period of Bid
Security?
i.
Form, Amount,
and Validity of
Performance
Security?
j.
Form of
Contract,
General and
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Special
Conditions of
Contract?
Are the Bidding
Documents in the
required form:
a.
Request for
Expression of
Interest?
b.
Instructions to
Bidders?
c.
d.
General
Conditions of
the Contract?
e.
Special
Conditions of
Contract?
f.
Terms of
Reference?
g.
Bidding Forms?
h.
Appendices?
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results
of the audit with the auditees
Management
COA Circular No. 2009-006 dated
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of Interest
Audit Activities
1. Secure from the BAC
Secretariat a duly certified
copy of the Minutes of
Pre-Procurement
Conference and compare
Yes
Particulars of
the Answer
No
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Audit Sub-objective
Audit Criteria
hired by the procuring entity,
who prepared the Bidding
Documents and the draft
Request for Expression of
Interest
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. The pre-procurement
conference shall be attended by the
BAC, the Secretariat, the unit or
officials, including consultants hired
by the procuring entity, who
prepared the Bidding Documents
and the draft Request for Expression
of Interest, for each procurement.
Audit Activities
as bases for identifying
and notifying the
participants to the PreProcurement Conference,
including duly certified
copies of the notices
issued with evidence of
receipt by the participants
3. From the Minutes of
Pre-Procurement
Conference look for the
information on the
presentation of the scope
of the contract, the ABC,
and contract duration, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
description of the scope of
the contract, the ABC, and
the contract duration
information on the
presentation of the review
of the PPMP and APP,
availability of
appropriations and
programmed budget for
the contract, the
deliberation thereon, and
the conclusions reached
Particulars of
the Answer
No
b. Secretariat?
Pre-Procurement
Conference look for
Yes
a. Description of the
scope of the
contract?
b. ABC?
c. Contract duration?
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Audit Sub-objective
Audit Criteria
for short listing, minimum
score for short listing, number
of short listed consultants,
criteria for bid evaluation and
post-qualification;
f. Reviewed and adopted the
procurement schedule,
including deadlines and
timeframes, for the different
activities; and
g. Reiterated and
emphasized the importance of
confidentiality and the
applicable sanctions and
penalties, as well as agreed on
measures to ensure
compliance with the foregoing.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
20.1. During the conference, the
Audit Activities
Audit Question
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
procurement is in
accordance with the PPMP
and APP, and availability
of appropriations and
programmed budget for
the contract.
b. appropriations
and programmed
budget for the
contract are
available?
Pre-Procurement
Conference look for
information on the
presentation of the
Bidding Documents, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
completeness of the
Bidding Documents and
their adherence to the
Philippine Bidding
Documents (PBDs)/
customized Bidding
Documents.
7. From the Minutes of
Pre-Procurement
Conference look for
information on the
presentation of the criteria
for eligibility screening,
bid evaluation, and postqualification, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the criteria
for eligibility screening,
criteria for short listing,
minimum score for short
listing, number of short
listed consultants, criteria
for bid evaluation and
post-qualification.
Yes
Particulars of
the Answer
No
a. completeness of
the Bidding
Documents?
b. adherence to the
Philippine Bidding
Documents
(PBDs)/
customized
Bidding
Documents?
Did the participants
led by the BAC
discuss and confirm
the:
a. Criteria for
Eligibility screening?
a.
b.
Minimum score
for short listing?
c.
Number of short
listed
consultants?
d.
e.
Criteria Postqualification?
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Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
information on the
presentation of the
procurement schedule,
including deadlines and
timeframes for the
different activities, the nocontact rule, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
adoption of the
procurement schedule
including deadlines and
timeframes for the
different activities and
agreement on the nocontact rule.
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
Definition:
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Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results
of the audit with the auditees
Management
COA Circular No. 2009-006 dated
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Audit Activities
Expression of Interest
in a newspaper of
general nationwide
circulation which has
been regularly
published for at least
2 years before the
date of issue of the
advertisement?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
2. To verify if the BAC posted
the Request for Expression
of Interest continuously in
the PhilGEPS website, the
website of the procuring
entity concerned, if
available, and the website
prescribed by the foreign
government/foreign or
international financing
institution, if applicable, for
7 calendar days starting on
the date of advertisement
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2 2009:
21.2.1. Except as otherwise
Audit Activities
the Answer
3. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
4. On the first day of posting
access the PhilGEPS website,
the website of the procuring
entity concerned, if
available, and website
prescribed by the foreign
government/ foreign or
international financing
institution, if applicable.
Print the page where the
notice was posted (to form
part of the audit evidences).
5. Access the websites at
random during the 7-day
period to verify the postings.
6. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
Request for
Expression of Interest
continuously in the:
a. PhilGEPS website
for 7 calendar
days starting on
the date of
advertisement?
b. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
c. website prescribed
by the foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
Request for
Expression of
Interest:
a.
continuously for
seven (7)
calendar days,
b.
at the
conspicuous
place reserved
for the purpose
in the premises
of the procuring
entity,
c.
as certified by
the head of the
BAC Secretariat
of the procuring
entity?
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Activities
the Answer
1. Ahead of any
procurement, request
the BAC Secretariat for
advance information on
the first day of any
posting.
2. On the first day of
posting access the
PhilGEPS website, the
website of the procuring
entity concerned, if
available, and website
prescribed by the
foreign government/
foreign or international
financing institution, if
applicable. Print the
page where the notice
was posted (to form
part of the audit
evidences).
3. Access the websites
at random during the 7day period to verify the
postings.
Request for
Expression of Interest
continuously in the:
a.
PhilGEPS website
for 7 calendar
days starting on
the date of
advertisement?
b.
website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
c.
website
prescribed by the
foreign
government/
foreign or
international
financing
institution, if
applicable, for 7
calendar days
starting on the
date of
advertisement?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
a
b. Posted continuously in the
PhilGEPS website, the website
of the procuring entity
concerned, if available, and the
website prescribed by the
foreign government/foreign or
international financing
institution, if applicable, for 7
calendar days starting on the
date of advertisement
4. Ahead of any
procurement, request
the BAC Secretariat for
advance information on
the first day of any
posting.
5. Conduct ocular
inspection on the first
day of posting.
Request for
Expression of
Interest:
a. continuously for
seven (7) calendar
days,
b. at the conspicuous
place reserved for
the purpose in the
premises of the
procuring entity,
c. as certified by the
head of the BAC
Secretariat of the
procuring entity?
auditee in regard to
instances of noncompliance.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this Audit
Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
17.3.
a)
b) For the procurement of
consulting services, eligibility
documents shall be made
available from the time the
Request for Expression of Interest
is first advertised/posted until the
deadline for the eligibility check,
Audit Activities
for Expression of
Interest was first
advertised/ posted
up to the deadline
for the eligibility
check?
Audit Sub-objective
Audit Criteria
contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Activities
b) Competitiveness by
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Expression of Interest
for Expression of
Interest?
Eligibility
Requirements of
Consulting Services
those that are
required for
eligibility per
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
shall check the submitted
documents of each bidder against
a checklist of required documents
to ascertain if they are all present
using a non-discretionary
pass/fail criterion as stated in
the Instructions to Bidders. If the
bidder submits the required the
required documents, it shall be
rated passed for that particular
requirement.
24.4.2. Subject to the short listing
Audit Activities
Bidding
Documents?
6. Validate the entries in
the Checklist with the
eligibility documents of the
prospective bidders (for
presence or absence).
a) Class A Documents
Legal Documentsi)
ii)
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
shall be mandatory upon all
Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB.
Audit Activities
prospective bidders.
c. that stated the
reason(s) for
ineligibility?
d. were duly
received by the
prospective
bidders or
authorized
representative?
Audit Sub-objective
Audit Criteria
Audit Activities
(Note/Observation :
The Request for Expression of
Interest does not have a space
for this information)
24.1.
a) Class A Documents
Legal Documentsi)
ii)
Sheet.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
8. To verify if the BAC
conducted the short listing
based on the criteria and
rating system for short
listing of consultants as
specified in the Request for
Expression of Interest and
other relevant Bidding
Documents, which
considered the following,
among others (NOTE: The
recommended percentages are
as indicated in the Generic
Procurement Manual of
Procedures for the Procurement
of Consulting Services, June
2006, published by the GPPB.):
a. Applicable experience of
the consultant and
members in case of joint
ventures, considering
both the overall
experiences of the firm
or, in the case of new
firms, the individual
experiences of the
principal and key staff,
including the times when
employed by other
consultants 50%;
b. Qualification of personnel
who may be assigned to
the job vis--vis extent
and complexity of the
undertaking 30%; and
c. Current workload relative
to capacity 20%.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Request for
Expression of
Interest and other
relevant Bidding
Documents and
these considered
the following,
among others:
a. Applicable
experience of the
consultant and
members in case
of joint ventures,
considering both
the overall
experiences of the
firm or, in the case
of new firms, the
individual
experiences of the
principal and key
staff, including the
times when
employed by other
consultants
=
50%;
b. Qualification of
personnel who
may be assigned
to the job vis--vis
extent and
complexity of the
undertaking =
30%; and
c. Current workload
relative to capacity
= 20%.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
24.5.2. The number of short
Audit Activities
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
sector or discipline relevant to the
procurement at hand, for example:
i)
ii)
iii) For consulting services, a
project-related professional
organization accredited or duly
recognized by the Professional
Regulation Commission or the
Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
Audit Activities
f. Conformed with
other relevant
criteria
determined by
the BAC?
21. From certified copies of
the invitations to the
Observers with evidence of
receipt, compare the date of
receipt with the 3-day
minimum requirement.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Audit Sub-objective
Audit Criteria
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Activities
a)
b) For the procurement of
consulting services, the Bidding
Documents, from the
determination of the short list until
the deadline for the submission
and receipt of bids.
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
2. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting of Bidding
Documents.
3. On the first day of posting
access the PhilGEPS website,
the website of the procuring
entity concerned, if
available.
Print the page where the
notice was posted (to form
part of the audit evidences).
4. Access the websites at
random from the first day of
posting up to the deadline
for the submission and
receipt of bids to verify the
postings.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
project-related professional
organization accredited or
duly recognized by the
Professional Regulation
Commission or the Supreme
Court, and a non-government
organization (NGO) from the
procuring entitys Pool of
Observers;
b. that have:
b.1. knowledge, experience
or expertise in
procurement or in the
subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria
determined by the BAC;
c. at least 3 calendar days prior
to the pre-bid conference
Audit Activities
the Answer
b. One representing
the project-related
professional
organization
accredited or duly
recognized by the
Professional
Regulation
Commission or the
Supreme Court?
c. One representing
a non-government
organization?
e. With no actual or
potential conflict
of interest in the
contract to be bid?
a. One representing
the COA?
d. With knowledge,
experience or
expertise in
procurement or in
the subject matter
of the contract to
be bid?
f. Conformed with
other relevant
criteria determined
by the BAC?
5. From certified copies of
the invitations to the
Observers with evidence of
receipt, compare the date of
receipt with the 3-day
minimum requirement.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Activities
22.4. Any
statement made at the pre-bid
conference shall not modify the terms
of the Bidding Documents, unless
such statement is specifically
identified in writing as an amendment
thereto and issued as a
Supplemental/ Bid Bulletin.
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Audit Sub-objective
Audit Criteria
2. To verify if:
a. requests for
clarification(s) on any
part of the Bidding
Documents or for an
interpretation were in
writing and submitted
to the BAC of the
procuring entity at
least ten (10) calendar
days before the
deadline set for the
submission and
receipt of bids;
b. the Supplemental/ Bid
Bulletin was duly
signed by the BAC
Chairman;
c. the Supplemental/ Bid
Bulletin was issued at
least seven (7)
calendar days before
the deadline for the
submission and
receipt of bid.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
22.5.1 Requests for clarification(s)
on any part of the Bidding
Documents or for an interpretation
must be in writing and submitted
to the BAC of the procuring entity
at least ten (10) calendar days
before the deadline set for the
submission and receipt of bids. The
BAC shall respond to the said
request by issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman, to be
made available to all those who
have properly secured the Bidding
Documents, at least seven (7)
calendar days before the deadline
for the submission and receipt of
bids.
3. To verify if:
a. Supplemental/Bid Bulletins
initiated by the procuring
entity for purposes of
clarifying or modifying any
provision of the Bidding
Documents were issued at
Audit Activities
3. Obtain copy/ies of
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Audit Sub-objective
Audit Criteria
least seven (7) calendar
days before the deadline
for the submission and
receipt of bids;
b. Modifications to the
Bidding Documents were
identified as amendments;
c. the Supplemental/ Bid
Bulletin was duly signed by
the BAC Chairman
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
22.5.1. issuing a
Supplemental/Bid Bulletin, duly
signed by the BAC Chairman
Audit Activities
the Answer
8. Go through the
Supplemental/Bid
Bulletins and check for
the signature of the BAC
Chairman.
9. In advance of the
posting, request the BAC
Secretariat for print-outs
(printed on the day of the
posting) of Supplemental/
Bid Bulletins as posted on
the PhilGEPS and at their
website.
10. Obtain the printouts
requested as evidence of
the posting.
Supplemental/Bid
Bulletins:
a. on the PhilGEPS?
and
b. the website of the
procuring entity
concerned?
Audit Sub-objective
Audit Criteria
Audit Activities
Supplemental/Bid
Bulletins.
Supplemental/Bid
Bulletins?
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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2. To verify the causes of
instances of non-compliance
and develop appropriate
audit recommendations
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Receiving logbook of the BAC Secretariat with information on the receipt of bids;
Copy of the Minutes of the BAC meeting on the selection of the Observer from the pool;
Minutes of the Bid Opening;
Customized Bidding Documents for the Procurement of Consulting Services;
Bidding Documents for the specific procurement;
Checklists for Technical Envelope of Consulting Services accomplished by the BAC;
TWG report, as reviewed by the BAC, on the evaluation of technical proposals
Documentation of oral presentations made by consultants, if any;
Rating Sheets for technical proposals;
Ranking List approved by the HOPE;
Letters of invitation to consultant(s) for opening of financial proposals and negotiations;
TWG report , as reviewed by the BAC, on the evaluation of financial proposals
Minutes of deliberations/meeting on the negotiation and evaluation of financial proposals;
BAC Resolution declaring HRB HOPE;
Copy of reports of BAC Observers.
Audit Sub-objective
Audit Criteria
Audit Activities
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the Answer
representatives,
b. using the forms specified
in the Bidding Documents,
c. in two (2) separate sealed
envelopes submitted
simultaneously,
d. with the first envelope
containing the technical
component and
e. the second envelope
containing the financial
component of the bid
TECHNICAL PROPOSAL
and ORIGINAL
FINANCIAL PROPOSAL
Audit Activities
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2. To verify if the BAC
validated that in modifying a
bid:
a. it was done before the
deadline for the
submission and receipt of
bids,
b. the original bid was not
retrieved but another bid
equally sealed, properly
identified, was submitted
and linked to the original
bid and marked as a
modification, thereof,
and stamped received
by the BAC
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
26.1. A bidder may modify its bid,
provided that this is done before
the deadline for the submission
and receipt of bids. Where a
bidder modifies its bid, it shall not
be allowed to retrieve its original
bid, but shall only be allowed to
send another bid equally sealed,
properly identified, linked to its
original bid and marked as a
modification, thereof, and
stamped received by the BAC.
Bid modifications received after
the applicable deadline shall not
be considered and shall be
returned to the bidder unopened.
26.2. A bidder may, through a
letter, withdraw its bid before the
deadline for the receipt of bids.
Withdrawal of bids after the
applicable deadline shall be
subject to appropriate sanctions
as prescribed in this IRR. A
bidder may also express its
intention not to participate in the
bidding through a letter which
should reach and be stamped
received by the BAC before the
deadline for the receipt of bids. A
bidder that withdraws its bid shall
not be permitted to submit
another bid, directly or indirectly,
for the same contract.
Audit Activities
a. modifications were
marked as
modification and
stamped received by
the BAC;
and
b. linked to the original
bid (not withdrawn).
Audit Sub-objective
Audit Criteria
b. time, and
c. place
specified in the Request for
Audit Activities
receipt of bids and
compare these with those
in the Invitation to Bid
Expression of Interest
Expression of Interest?
Expression of Interest
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Audit Criteria
Audit Activities
the Answer
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Audit Activities
mails.
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Audit Activities
Instructions to Bidders
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Audit Sub-objective
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submitted documents of each
bidder against a checklist of
required documents to ascertain if
they are all present, using a
nondiscretionary pass/fail
criterion, as stated in the
Instructions to Bidders. If a bidder
submits the required document, it
shall be rated passed for that
particular requirement. In this
regard, bids that fail to include any
requirement or are incomplete or
patently insufficient shall be
considered as failed. Otherwise,
the BAC shall rate the said first bid
envelope as passed.
25.2. The first envelope shall
Audit Activities
b. Organizational chart
for the contract to be
bid?
c. List of completed and
on-going projects?
d. Approach, work plan,
and schedule?
e. List of key personnel
to be assigned to the
contract to be bid, with
their complete
qualification and
experience data?
f. Sworn statement by
the prospective bidder
or its duly authorized
representative in the
form prescribed by the
GPPB as to the
following:
f.1. It is not
blacklisted or barred
from bidding by the
GOP or any of its
agencies, offices,
corporations, or LGUs,
including foreign
government/ foreign or
international financing
institution whose
blacklisting rules have
been recognized by the
GPPB?
f.2. Each of the
documents submitted
in satisfaction of the
bidding requirements is
an authentic copy of
the original, complete,
and all statements and
information provided
therein are true and
correct?
f.3. It is authorizing
the Head of the
Procuring Entity or his
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Audit Activities
duly authorized
representative/s to
verify all the
documents submitted?
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this IRR. The BAC shall rank the
consultants in descending order
based on the numerical ratings of
their technical proposals and
identify the Highest Rated Bid:
Provided, however, that the
Highest Rated Bid shall pass the
minimum score indicated in the
Bidding Documents.
PROCUREMENT OF CONSULTING
SERVICES published by the GPPB:
SF-CONS-41 revised 9 May 04
(Checklist for Technical Envelope
Requirements)
Audit Activities
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Audit Sub-objective
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Audit Activities
a. Quality of personnel
to be assigned to the
project?
b. Experience and
capability of the
consultant?
c. Plan of approach and
methodology?
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a) Quality of personnel to be
assigned to the project which
covers suitability of key staff to
perform the duties of the
particular assignments and
general qualifications and
competence including education
and training of the key staff;
Audit Activities
33.2.2.
For complex or unique
undertakings, such as those
involving new concepts/
technology or financial advisory
services, participating short listed
consultants may be required, at
the option of the agency
concerned, to make an oral
presentation to be presented by
each consultant, or its nominated
Project Manager or head, in case
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Audit Activities
a. ranking the
consultants in
descending order
based on the
numerical ratings
and declaring the
consultant with the
highest score as the
HRB? and
b. with consideration of
the minimum score
indicated in the
bidding documents?
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Audit Activities
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and
b. posted the ranking and
total scores in the
PhilGEPS and the Procuring
Entitys websites for a
period of not less than 7
calendar days
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
33.2.4. All participating short listed
consultants shall be furnished the
results (ranking and total scores
only) of the evaluation after the
approval by the Head of the
Procuring Entity of the ranking.
Said results shall also be posted in
the PhilGEPS and the website of
the procuring entity, whenever
available, for a period of not less
than seven (7) calendar days.
Audit Activities
OPENING OF THE FINANCIAL PROPOSAL OF THE CONSULTANT WITH THE HIGHEST RATED BID
(HRB) AND NEGOTIATIONS
Did the BAC notify the
1. To verify if the BAC, within 1. From the notice to the
consultant with the HRB
three (3) calendar days after consultant with the HRB,
look for information:
within 3 calendar days
approval by the HOPE of the
a) Quality-Based Evaluation
Procedure
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Activities
the Answer
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4. To verify if the BAC
completed negotiations with
any one consultant within 10
calendar days
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
33.2.5. Negotiations
a)
.
f)
Except for meritorious reasons,
negotiations with anyone
consultant shall be completed
within ten (10) calendar days.
Audit Sub-objective
Audit Criteria
Audit Activities
IN CASE OF FAILURE OF THE NEGOTIATION WITH THE CONSULTANT WITH THE HIGHEST RATED
BID (HRB)
1. From the minutes of
Did the BAC terminate
1. To verify if the BAC
negotiations with the
terminated negotiations with the negotiation, look for
information
on
the
official
consultant with the HRB
the consultant with the HRB
termination of the
when no agreement on
when no agreement on all
negotiations as a result of
all items discussed was
items discussed was possible
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
6.2. Once issued by the GPPB,
the use of the Generic
Procurement Manuals (GPMs),
Philippine Bidding Documents
(PBDs), and other standard forms
shall be mandatory upon all
Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB.
non-agreement in all of
the items discussed with
the consultant with the
HRB.
possible?
NOTE:
For each failure of
negotiations with
the next-rank
bidder, the BAC is
to repeat the
Step 1
Step 8. Negotiate with the
consultant with the Highest
Rated Bid.
What happens if negotiations
with the bidder with the HRB
fail?
If agreement on all items
discussed during negotiations is
not possible between the BAC
and the first-in-rank consultant,
the BAC would have to
terminate negotiations and
invite the next-rank consultant
for negotiations. The procedure
for negotiations, as described
above, shall be repeated until
negotiation with the consultant
is successfully completed.
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Audit Sub-objective
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Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
6.2. Once issued by the GPPB,
the use of the Generic
Procurement Manuals (GPMs),
Philippine Bidding Documents
(PBDs), and other standard forms
shall be mandatory upon all
Procuring Entities. However,
whenever necessary, to suit the
particular needs of the procuring
entity, modifications may be
made, particularly for major and
specialized procurement, subject
to the approval of the GPPB.
Audit Activities
the HRB?
Step 1
Step 8. Negotiate with the
consultant with the Highest
Rated Bid.
What happens if negotiations
with the bidder with the HRB
fail?
If agreement on all items
discussed during negotiations is
not possible between the BAC
and the first-in-rank consultant,
the BAC would have to
terminate negotiations and
invite the next-rank consultant
for negotiations. The procedure
for negotiations, as described
above, shall be repeated until
negotiation with the consultant
is successfully completed.
INVOLVEMENT OF THE BAC OBSERVERS IN THE OPENING OF THE FINANCIAL PROPOSAL(S) AND
NEGOTIATIONS WITH THE CONSULTANTS WITH THE HRB AND NEXT-IN-RANK
1. From the Minutes of the Did the BAC choose the
1. To verify if the BAC
BAC meeting on the
Observers considering:
invited Observers:
selection
of
the
Observer
a. representing the COA, the
project-related professional
organization accredited or
duly recognized by the
Professional Regulation
Commission or the Supreme
Court, and a non-government
organization (NGO) from the
procuring entitys Pool of
Observers;
b. that have:
b.1. knowledge, experience
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Audit Sub-objective
Audit Criteria
or expertise in
procurement or in the
subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria
determined by the BAC;
c. at least 3 calendar days prior
to the opening of financial
proposal
Audit Activities
the Answer
contract to be bid;
no actual or potential
conflict of interest in
the contract to be bid;
and
conformed with other
relevant criteria
determined by the
BAC.
Professional
Regulation
Commission or the
Supreme Court?
c. One representing a
non-government
organization?
d. With knowledge,
experience or
expertise in
procurement or in
the subject matter of
the contract to be
bid?
e. With no actual or
potential conflict of
interest in the
contract to be bid?
f. Conformed with
other relevant
criteria determined
by the BAC?
2. From certified copies of
the invitations to the
Observers with evidence
of receipt, compare the
date of receipt with the 3day minimum requiremen
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
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Audit Activities
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
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3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Audit Activities
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A. AUDIT OBJECTIVES:
1. To verify if bids were submitted and received at the required date, time, and place;
2. To verify if the BAC opened the bids at the required date, time, place and adopted the
prescribed procedures;
3. To verify if the BAC and the Procuring Entity as a whole performed the evaluation of bids
according to the prescribed procedures and timelines.
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1.
Copy of the Minutes of the BAC meeting on the selection of the Observer from the pool;
2.
Invitation letters for the Observers, duly received by them;
3.
Reports of the BAC Observers;
Request for Expression of Interest;
4.
5.
Receiving logbook of the BAC Secretariat with information on the receipt of bids;
Minutes of the Bid Opening;
6.
7.
Customized Bidding Documents for the Procurement of Consulting Services;
8.
Bidding Documents for the specific procurement;
9.
Checklists for Technical Envelope of Consulting Services accomplished by the BAC;
10. TWG report, as reviewed by the BAC, on the evaluation of technical proposals;
11. Documentation of oral presentations made by consultants, if any;
12. Rating Sheets for technical proposals;
13. Minutes of meetings on the evaluation of the technical proposals;
14. BAC Resolution on the evaluation and results of the technical proposals, duly approved by
the HOPE;
15. Letters of notification to consultants on the results of the evaluation (rejection);
16. Letters of notification to consultants on the results of the evaluation of their technical
proposal and invitation for the opening of financial proposals, duly received by them;
17. Minutes of the meetings on the opening of the financial proposals;
18. Checklists for Financial Envelope of Consulting Services accomplished by the BAC;
19. Minutes of the meetings on the evaluation of the financial proposals;
20. TWG report, as reviewed by the BAC, on the evaluation of financial proposals;
21. BAC Resolution, duly approved by the HOPE, on the results of the evaluation of financial
proposals;
22. TWG report with supporting documents, as reviewed by the BAC, on the evaluation of the
combination of the technical and financial proposals and ranking;
23. Ranking List of consultants;
24. BAC Resolution declaring and recommending the HRB/SRB to the HOPE for approval;
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25.
26.
27.
28.
Invitation letter for negotiation with the HRB/SRB duly received by the consultant
concerned;
Minutes of meetings on the negotiations with the HRB/SRB;
TWG report with supporting documents, as reviewed by the BAC, on the evaluation of the
information pertaining to negotiations;
BAC Resolution, duly approved by the HOPE, on the results of the negotiations with the
HRB and recommending the conduct of post-qualification evaluation.
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
ORIGINAL
TECHNICAL
PROPOSAL and
ORIGINAL
FINANCIAL
PROPOSAL and also
and
3. Go through the
mentioned already
opened envelopes.
information on the
BACs validation if
each bidder adopted
the forms specified in
the Bidding
Documents.
d. the second
containing the financial
component of the bid?
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Audit Activities
BID.
17.2.
4. Go through the
records of the BAC
pertaining to the
submission of bids of
each bidder and check
if the submission of
modifications were
done before the
deadline for the
submission and
receipt.
5. Go through the
information on the
BACs activities
validating if:
a. modifications were
marked as
modification and
stamped received
by the BAC; and
b. linked to the
original bid (not
withdrawn).
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Audit Activities
Expression of Interest
of Opening of Bids,
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Audit Activities
of the Chairman or
Vice-Chairman and if
majority of the BAC
members or
representatives/alterna
tes attended the
proceedings.
Instructions to Bidders
6. Compare the
Checklist for Technical
Envelope of Consulting
Services with the
required form (SF-
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of RA 9184, as amended on September 2,
2009:
30.1. The BAC shall open the first bid
envelopes of prospective bidders in public
to determine each bidders compliance
with the documents required to be
submitted for eligibility and for the
technical requirements, as prescribed in
this IRR. For this purpose, the BAC shall
check the submitted documents of each
bidder against a checklist of required
documents to ascertain if they are all
present, using a nondiscretionary
pass/fail criterion, as stated in the
Instructions to Bidders. If a bidder submits
the required document, it shall be rated
passed for that particular requirement.
In this regard, bids that fail to include any
requirement or are incomplete or patently
insufficient shall be considered as failed.
Otherwise, the BAC shall rate the said first
bid envelope as passed.
25.2. The first envelope shall contain the
Audit Activities
7. Compare the list of
documents in the
Checklist with the list
of documents required
to be submitted per
the Bidding
Documents.
8. Determine if the
BACs entries in the
Checklist are
complete.
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Audit Criteria
the original, complete, and all
statements and information provided
therein are true and correct;
(3) It is authorizing the Head of the
Procuring Entity or his duly authorized
representative/s to verify all the
documents submitted;
(4) The signatory is the duly authorized
representative of the prospective
bidder, and granted full power and
authority to do, execute and perform
any and all acts necessary and/or to
represent the prospective bidder in
the bidding, with the duly notarized
Secretarys Certificate attesting to
such fact, if the prospective bidder is
a corporation, partnership,
cooperative, or joint venture;
(5) It complies with the disclosure
provision under Section 47 of the Act
in relation to other provisions of R.A.
3019;
(6) It complies with the responsibilities
of a prospective or eligible bidder
provided in the PBDs; and
(7) It complies with existing labor laws
and standards, in the case of
procurement of services.
33.2.1 The BAC shall conduct a detailed
evaluation of bids using either of the
following evaluation procedures as
specified in the Bidding Documents:
a) Quality-Based Evaluation Procedure
i)
ii) After receipt of bids, the technical
proposals shall first be opened and
evaluated, in accordance with Section
33.2.2. of this IRR. The BAC shall rank
the consultants in descending order
based on the numerical ratings of their
technical proposals and identify the
Highest Rated Bid: Provided, however,
that the Highest Rated Bid shall pass the
minimum score indicated in the Bidding
Documents.
Audit Activities
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Audit Activities
9. From the Minutes of
the Bid Opening look
for information
indicating that the BAC
declared as failed in
the first envelope bids
that failed to include
any requirement or
are incomplete or
patently insufficient;
otherwise, that the
BAC rated the first bid
envelope as passed.
examination of bids?
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Audit Activities
5. Compare the
criteria and numerical
weights used by the
TWG/BAC in their
evaluation for each
consultant (per TWG
reports and supporting
documents) with those
specified in the
Bidding Documents.
a. Quality of personnel
to be assigned to the
project?
b. Experience and
capability of the
consultant?
c. Plan of approach and
methodology?
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Audit Activities
33.2.2.
For complex or unique undertakings,
such as those involving new concepts/
technology or financial advisory services,
participating short listed consultants may
be required, at the option of the agency
concerned, to make an oral presentation
to be presented by each consultant, or
its nominated Project Manager or head,
in case of firms, within fifteen (15)
calendar days after the deadline for
submission of technical proposals.
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Audit Sub-objective
Audit Criteria
Audit Activities
a. notify those
Consultants whose
Bids did not meet
the minimum
qualifying mark or
were considered
non-responsive to
the Bidding
Documents and
TOR, indicating that
their Financial
Proposals shall be
returned unopened
after completing the
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Proposals
Philippine Bidding Documents for the
Procurement of Consulting Services 3rd
Edition (October 2009) approved through
GPPB Resolution No. 05-2009 dated 30
September 2009:
Part II, Section III. Bid Data Sheet
ITB Clause 25.2. If the Fund Source is
GOP
For Quality Cost Based Evaluation
(QCBE): After the evaluation of quality is
completed, the Procuring Entity shall
notify those Consultants whose Bids did
not meet the minimum qualifying mark
or were considered non-responsive to the
Bidding Documents and TOR, indicating
that their Financial Proposals shall be
returned unopened after completing the
selection process. The Procuring Entity
shall simultaneously notify the
Consultants that have secured the
minimum qualifying mark, indicating the
date and time set for opening the
Financial Proposals. The opening date
shall not be sooner than two weeks after
the notification date unless otherwise
specified in ITB Clause 25.1. The
notification may be sent by registered
letter, facsimile, or electronic mail.
Audit Activities
bid did not meet the
minimum qualifying
mark or were
considered nonresponsive to the
Bidding Documents
and TOR, and that
their Financial
Proposals shall be
returned unopened
after completing the
selection; or that they
have obtained the
minimum qualifying
mark with the date
and time set for
opening the Financial
Proposals.
10. Count the number
of days from the
notification to the
opening date of the
Financial Proposals
indicated in the letters
and compare with the
2-week minimum
requirement.
selection?
b. simultaneously notify
the Consultants that
have secured the
minimum qualifying
mark, indicating the
date and time set for
opening the Financial
Proposals?
Audit Sub-objective
Audit Criteria
2. To verify if the BAC
a. read aloud and recorded the
name of the Consultant, the
quality scores, and the
proposed prices when the
Financial Proposals were
opened
and
b. prepared Minutes of the public
opening of the Financial
Proposals
Audit Activities
2. From the Minutes of
the opening of the
Financial Proposals,
look for information on
reading out loud of the
name of the
Consultant, the quality
scores, and the
proposed prices
of the
Answer
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Audit Sub-objective
Audit Criteria
Audit Activities
a. completeness of
documents
b. computational
errors were
corrected,
c. prices in various
currencies were
converted to the
Philippine peso at
the rate indicated
in ITB Clause 13,
d. include the cost of
all taxes, duties,
fees, levies, and
other charges
imposed under the
applicable laws,
e. special tax
privileges are
granted to a
particular class or
nationality of
Consultants by
virtue of the GOPs
international
commitments, the
amount of such tax
privileges shall be
included in the
Financial Proposal
for purposes of
comparative
evaluation of bids,
f. Financial Proposal
did not exceed the
ABC,
g. lowest Financial
Proposal (Fm) shall
be given a Financial
Score (Sf) of 100
points,
a. Financial Proposals
are complete:
a.1.2 FPF 2.
Summary of Costs?
a.1.3 FPF 3.
Breakdown of Price
per Activity?
a.1.4 FPF 4.
Breakdown of
Remuneration per
Activity?
a.1.5 FPF 5.
Reimbursables per
Activity?
a.1.6 FPF 6.
Miscellaneous
Expenses. Related
to the cost of
consulting services
under two distinct
categories, namely:
(a) Remuneration;
and (b)
Reimbursable
Expenditures?
a.2. all items of the
Technical Proposals that
are required to be priced
are so priced, otherwise
rejected the Proposal?
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Audit Sub-objective
Audit Criteria
f. Financial Proposal did not
exceed the ABC,
g. lowest Financial Proposal (Fm)
shall be given a Financial Score
(Sf) of 100 points,
h. The Sf of other Financial
Proposals were computed based
on the formula indicated below:
Sf = 100 x Fl/F
Philippine Bidding Documents for the
Procurement of Consulting Services 3rd
Edition (October 2009) approved through
GPPB Resolution No. 05-2009 dated 30
September 2009:
Part II, Section III. Bid Data Sheet
ITB Clause 25.2. If the Fund Source is
GOP
For Quality Cost Based Evaluation
(QCBE)
Audit Activities
h. The Sf of other
Financial Proposals
were computed
based on the
formula:
Sf =
100 x Fl/F.
b. computational errors
were corrected?
c. prices in various
currencies were
converted to the
Philippine peso at the
rate indicated in ITB
Clause 13?
d. include the cost of all
taxes, duties, fees,
levies, and other
charges imposed
under the applicable
laws?
e. special tax privileges
are granted to a
particular class or
nationality of
Consultants by virtue
of the GOPs
international
commitments, the
amount of such tax
privileges shall be
included in the
Financial Proposal for
purposes of
comparative
evaluation of bids?
f. Financial Proposal did
not exceed the ABC?
g. Lowest Financial
Proposal (Fm) shall be
given a Financial
Score (Sf) of 100
points?
h. The Sf of other
Financial Proposals
were computed based
on the formula:
Sf = 100 x Fl/F ?
Sf = 100 x Fl/F
Where:
Sf is the financial score of the Financial
Proposal under consideration,
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Audit Sub-objective
Audit Criteria
Audit Activities
ITB Clause 11
ITB Clause 11.2
The Financial Proposal requires
completion of six (6) forms, particularly,
FPF 1, FPF 2, FPF 3, FPF 4, FPF 5, FPF
6. FPF 1. Financial Proposal Submission
Form should form the covering letter of
the Financial Proposal. Form FPF 2.
Summary of Costs, FPF 3. Breakdown
of Price per Activity, FPF 4. Breakdown
of Remuneration per Activity, FPF 5.
Reimbursables per Activity, and FPF 6.
Miscellaneous Expenses. Relate to the
cost of consulting services under two
distinct categories, namely: (a)
Remuneration; and (b) Reimbursable
Expenditures.
Audit Sub-objective
Audit Criteria
Audit Activities
Sf = 100 x Fl/F
Where:
Sf is the financial score of the Financial
Proposal under consideration,
Fl is the price of the Fm,
F is the price of the Financial Proposal
under consideration
Using the formula S = St x T% + Sf
x p%, the Bids shall then be ranked
according to their combined St and
SF using the weight (T = the
weight given to the Technical
Proposal; F = the weight given to
the Financial Proposal; T + F = 1)
indicated below:
T - [Normally between 0.6 and
0.85]; and
P - [Normally between 0.15 and
0.4];
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Something is wrong with the
formula! Perhaps F should be P?
Implementing Rules and Regulations (IRR)
of RA 9184, as amended on September 2,
2009:
33.2. The purpose of bid evaluation is to
determine the Highest Rated Bid using
the following steps:
33.2.1. The BAC shall conduct a detailed
evaluation of bids using either of the
following evaluation procedures as
specified in the Bidding Documents:
a)
b) Quality-Cost Based Evaluation
Procedure
i) The technical proposal together with
the financial proposal shall be
considered in the evaluation of
consultants. The technical proposals
shall be evaluated first using the
criteria in Section 33.2.2 of this IRR.
The financial proposals of the
consultants who meet the minimum
technical score shall then be opened.
ii) The financial and technical proposals
shall be given corresponding weights
with the financial proposal given a
minimum weight of fifteen percent
(15%) up to a maximum of forty
percent (40%). The weight of the
technical criteria shall be adjusted
accordingly such that their total
weight in percent together with the
weight given to the financial
proposal shall add to one hundred
percent (100%).
The exact weights shall be approved
by the Head of the Procuring Entity
upon the recommendation of the
BAC and indicated in the Bidding
Documents. The BAC shall rank the
consultants in descending order
based on the combined numerical
ratings of their technical and
financial proposals and identify the
Highest Rated Bid.
iii) The Head of the Procuring Entity
shall approve or disapprove the
recommendations of the BAC within
two (2) calendar days after receipt
of the results of the evaluation from
the BAC.
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
period of not less than 7
calendar days
Audit Activities
received by them).
and
b. post the ranking and
total scores in the
PhilGEPS website for
a period of not less
than 7 calendar days?
9. Using print-outs of
the web page
(PhilGEPS and the
Procuring Entitys
websites) with the
posted results of
evaluation, count the
number of days from
the first to the last day
of said posting and
compare with the 7day requirement.
on the date of
receipt of the
notice by the
consultant; and
and
c. post the ranking and
total scores in the
Procuring Entitys
website for a period
of not less than 7
calendar days?
iii)
iv) After approval by the Head of the
Procuring Entity of the Highest
Rated Bid, the BAC shall, within
three (3) calendar days, notify and
invite the consultant with the
Highest Rated Bid for negotiation in
accordance with Section 33.2.5 of
this IRR, except for item (e)
thereof.
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Audit Sub-objective
Audit Criteria
and Scope of Services;
b. Discussion and finalization of
the methodology and work
program proposed by the
consultant;
c. Consideration of the
appropriateness of qualifications
and pertinent compensation,
number of man-months and the
personnel to be assigned to the
job, taking note of overqualified personnel, to be
commensurate with the
compensation of personnel with
the appropriate qualifications,
number of man-months and
schedule of activities (manning
schedule);
d. Discussion on the services,
facilities and data, if any, to be
provided by procuring entity;
and
e. Provisions of the contract
Implementing Rules and Regulations (IRR)
of RA 9184, as amended on September 2,
2009:
33.2.5 Negotiations shall cover the
following:
a) Discussion and clarification of the
TOR and Scope of Services;
b) Discussion and finalization of the
methodology and work program
proposed by the consultant;
c) Consideration of appropriateness of
qualifications and pertinent
compensation, number of man-months
and the personnel to be assigned to
the job, taking note of over-qualified
personnel, to be commensurate with
the compensation of personnel with
the appropriate qualifications, number
of man-months and schedule of
activities (manning schedule);
d) Discussion on the services, facilities
and data, if any, to be provided by
procuring entity;
e) ; and
f) Provisions of the contract.
Audit Activities
Terms Of Reference
(TOR) and Scope of
Services;
b. Discussion and
finalization of the
methodology and
work program
proposed by the
consultant;
c. Consideration of the
appropriateness of
qualifications and
pertinent
compensation,
number of manmonths and the
personnel to be
assigned to the job,
taking note of overqualified personnel,
to be commensurate
with the
compensation of
personnel with the
appropriate
qualifications,
number of manmonths and
schedule of activities
(manning schedule);
d. Discussion on the
services, facilities
and data, if any, to
be provided by
procuring entity;
e. Discussion on the
financial proposal
submitted by the
consultant; and
f. Provisions of the
contract
of the
Answer
a. Discussion and
clarification of the
Terms Of Reference
(TOR) and Scope of
Services?
b. Discussion and
finalization of the
methodology and
work program
proposed by the
consultant?
c. Consideration of the
appropriateness of
qualifications and
pertinent
compensation,
number of manmonths and the
personnel to be
assigned to the job,
taking note of overqualified personnel,
to be commensurate
with the
compensation of
personnel with the
appropriate
qualifications, number
of man-months and
schedule of activities
(manning schedule)?
d. Discussion on the
services, facilities and
data, if any, to be
provided by procuring
entity?
and
e. Provisions of the
contract?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations (IRR)
of RA 9184, as amended on September 2,
2009:
33.2.5. Negotiations
a)
.
f)
Except for meritorious reasons,
negotiations with anyone consultant shall
be completed within ten (10) calendar
days.
Audit Activities
of the
Answer
IN CASE OF FAILURE OF THE NEGOTIATION WITH THE CONSULTANT WITH THE HIGHEST RATED
BID (HRB)
Did the BAC terminate
1. To verify if the BAC terminated 1. From the minutes
of the negotiation,
negotiations with the
negotiations with the consultant
look
for
information
on
consultant with the HRB
with the HRB when no agreement
the official termination when no agreement on
on all items discussed was
of the negotiations as
all items discussed was
possible
a result of non-
possible?
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Audit Sub-objective
Audit Criteria
Audit Activities
Step 1
Step 8. Negotiate with the consultant
with the Highest Rated Bid.
What happens if negotiations with the
bidder with the HRB fail?
If agreement on all items discussed
during negotiations is not possible
between the BAC and the first-in-rank
consultant, the BAC would have to
terminate negotiations and invite the
next-rank consultant for negotiations.
The procedure for negotiations, as
described above, shall be repeated
until negotiation with the consultant is
successfully completed.
NOTE:
For each failure
of negotiations
with the nextrank bidder, the
BAC is to repeat
the process until
the negotiation is
completed.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
Step 1
Step 8. Negotiate with the consultant
with the Highest Rated Bid.
What happens if negotiations with the
bidder with the HRB fail?
If agreement on all items discussed
during negotiations is not possible
between the BAC and the first-in-rank
consultant, the BAC would have to
terminate negotiations and invite the
next-rank consultant for negotiations.
The procedure for negotiations, as
described above, shall be repeated
until negotiation with the consultant is
successfully completed.
INVOLVEMENT OF THE BAC OBSERVERS IN THE OPENING OF THE FINANCIAL PROPOSAL(S) AND
NEGOTIATIONS WITH THE CONSULTANTS WITH THE HRB AND NEXT-IN-RANK
1. From the Minutes of Did the BAC choose the
1. To verify if the BAC invited
the BAC meeting on
Observers considering:
Observers:
the selection of the
a. representing the COA, the
Observer from the
g. One representing the
project-related professional
pool, check for
COA?
organization accredited or duly
information on the
recognized by the Professional
BACs evaluation in
h. One representing the
Regulation Commission or the
regard to:
project-related
Supreme Court, and a non the selection of the
professional
government organization (NGO)
organization from
organization
which the Observer
accredited or duly
from the procuring entitys Pool
will be invited;
recognized by the
of Observers;
knowledge,
Professional
b. that have:
experience or
Regulation
b.1. knowledge, experience or
expertise in
Commission or the
expertise in procurement
procurement or in
Supreme Court?
or in the subject matter of
the subject matter
the contract to be bid;
of the contract to
i. One representing a
b.2. no actual or potential
be bid;
non-government
conflict of interest in the
no actual or
organization?
potential conflict of
contract to be bid; and
j. With knowledge,
interest in the
b.3. conformed with other
experience or
contract
to
be
bid;
relevant criteria
expertise in
and
determined by the BAC;
procurement or in
conformed with
c. at least 3 calendar days prior to
the subject matter of
other relevant
the opening of the financial
the contract to be
criteria determined
proposal
bid?
by the BAC.
Implementing Rules and Regulations (IRR)
of RA 9184, as amended on September 2,
2009:
k. With no actual or
potential conflict of
interest in the
contract to be bid?
l. Conformed with
other relevant
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
the procurement process, invite, in
addition to the representative of the
COA, at least two (2) observers, who
shall not have the right to vote, to sit in
its proceedings where:
a) At least one (1) shall come from a duly
recognized private group in a sector or
discipline relevant to the procurement at
hand, for example:
i)
ii)
iii) For consulting services, a projectrelated professional organization
accredited or duly recognized by the
Professional Regulation Commission or
the Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of Certified
Public Accountants (PICPA); and
(3) Confederation of Filipino Consulting
Organizations; and
b) The other observer shall come from a
non-government organization (NGO).
Audit Activities
criteria determined
by the BAC?
2. From certified
copies of the
invitations to the
Observers with
evidence of receipt,
compare the date of
receipt with the 3-day
minimum requirement.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
2. To verify the causes of
instances of non-compliance and
develop appropriate audit
recommendations
Audit Activities
Analyze the instances
of non-compliances to
establish the cause(s)
and develop
appropriate audit
recommendations.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
EVALUATING AUDIT EVIDENCES GATHERED AND COMMUNICATING THE RESULTS OF AUDIT
Analyze the instances
1. To verify the effects of
of non-compliance to
Appropriate Audit Working Papers
instances of non-compliance on
establish
the
effects
the:
and develop
a. validity of the procurement
appropriate audit
activities and outputs including recommendations.
the validity of the resulting
contract;
Also determine if
b. validity of any payment to be
made on the basis of the
contract;
c. etc.
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
Also determine if
appropriate actions
were taken by the
auditee in regard to
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
Prepare the
appropriate audit/
validation document
reflecting the results
of the audit/validation
and transmit to
Management
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XII. POST-QUALIFICATION
FOR THE PROCUREMENT OF CONSULTING SERVICES
The Highest Rated Bid (HRB) or Single Rated Bid (SRB), if lone, shall undergo postqualification in order to determine whether the bidder concerned complies with and is responsive
to all the requirements and conditions as specified in the Bidding Documents.
A. AUDIT OBJECTIVES:
1. To verify if the BAC performed the post-qualification according the prescribed
procedures
2. To verify if the BAC performed the prescribed procedures for post-qualification within
the required time
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. BAC Resolution, duly approved by the BAC, on the results of the negotiations with the
HRB with recommendations for approval by the HOPE;
2. Copy of the BAC Secretariats Receiving logbook indicating information on receipt of the:
a) Tax clearance, b) Latest income and business tax returns, c) Certificate of PhilGEPS
Registration; and d) Other appropriate licenses and permits required by law and stated in
the Bidding Documents, submitted by the bidder with the HRB/SRB;
3. Copy each of the documents submitted by the bidder with the HRB/SRB for eligibility
screening, documents comprising the Technical Proposal, documents comprising the
Financial Proposal, documents submitted for post-qualification;
4. TWG report on the post-qualification conducted, including supporting documents as
reviewed by the BAC; evidencing:
5. validation of the authenticity of the documents submitted and information thereon;
6. validation of compliance with the legal, technical, and financial requirements of the
Bidding Documents;
7. conduct of analysis and concluding on the post-qualification or disqualification of the
bidder, as the case may be;
8. BAC Resolutions on post-qualification/post-disqualification, declaration of HRRB/SRRB, and
recommendation to the HOPE;
9. TWG report(s) on the evaluation of the post-disqualified bidder(s) request for
reconsideration, as reviewed by the BAC;
10. Minutes of the post-qualification activities;
11. Copy of the document approved by the HOPE extending the period for the postqualification process, if applicable;
12. Minutes of the BAC meeting on the selection of the Observer from the pool;
13. Copies of invitation letters for the BAC Observers, duly received by them;
14. Reports of the BAC Observers.
Audit Sub-objective
Audit Criteria
1. To verify if the BAC
conducted post-qualification
of the Highest Rated Bid
(HRB)
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
September 3, 2009:
34.1 The Highest Rated Bid shall
undergo post-qualification in order
to determine whether the bidder
concerned complies with and is
responsive to all the requirements
and conditions as specified in the
Bidding Documents.
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Audit Sub-objective
Audit Criteria
3. To verify if the BAC:
3.1. determined the veracity
of the documents
submitted and
3.2. forfeited the bid
security and disqualified
the bidder for award for
reason that;
a. the bidder failed to
submit the required
documents on time,
and/or
b. there was a finding
against the veracity of
the documents/
information
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.2.Within three (3) calendar
days from receipt by the bidder of
the notice from the BAC that the
bidder has the Lowest Calculated
Bid or Highest Rated Bid, the bidder
shall submit the following
documentary requirements to the
BAC:
a) Tax clearance;
b) Latest income and business tax
returns;
c) Certificate of PhilGEPS
Registration; and
d) Other appropriate licenses and
permits required by law and
stated in the Bidding Documents.
Failure to submit the above
requirements on time or a finding
against the veracity of such shall be
ground for the forfeiture of the bid
security and disqualify the bidder
for award.
Audit Activities
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Audit Sub-objective
Audit Criteria
or
c. a Corporation duly
organized under the laws
of the Philippines, and of
which at least seventy five
percent (60%) of the
outstanding capital stock
belongs to citizens of the
Philippines, or
d. Cooperatives duly
organized under the laws
of the Philippines, and of
which at least seventy five
percent (60%) belongs to
citizens of the Philippines,
or
e. Joint Venture - that
Filipino ownership or
interest of the joint
venture concerned shall
be at least seventy five
percent (60%)
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Highest Rated Bid, using nondiscretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is not
included in any blacklist as
provided in Section 25.2 of this
IRR. For this purpose, the GPPB
shall maintain a consolidated file
of all blacklisted suppliers,
contractors, and consultants.
b) Technical Requirements. To
Audit Activities
SEC-certified copy of
the Registration
Certificate and
SEC-certified copy of
the Articles of
Incorporation
if the bidder is a
corporation.
d. CDA registration and of
the 60% Filipino
ownership, duly supported
with:
CDA-certified copy of
the Registration
Certificate and
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
consulting services offered with
the requirements specified in
the Bidding Documents,
including, where applicable:
i) Verification and validation of
the bidders stated competence
and experience, and the
competence and experience of
the bidders key personnel to be
assigned to the project, for the
procurement of infrastructure
projects and consulting services;
ii) Verification of availability and
commitment, and/or inspection
and testing for the required
capacities and operating
conditions, of equipment units
to be owned/leased/under
purchase by the bidder for use
in the contract under bidding, as
well as checking the
performance of the bidder in its
ongoing government and
private contracts (if any of these
on-going contracts shows a
reported negative slippage of at
least fifteen percent (15%), ;
iii)
iv) Ascertainment of the
sufficiency of the bid security as
to type, amount, form and
wording, and validity period;
c) Financial Requirements. To
verify, validate and ascertain
the bid price proposal of the
bidder and, whenever
applicable, the required CLC in
the amount specified and over
the period stipulated in the
Bidding Documents, or the
bidders NFCC to ensure that
the bidder can sustain the
operating cash flow of the
transaction.
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
the Philippines;
and
b. when the types and fields
of consulting services in
which the foreign
consultant wishes to
engage involve the
practice of regulated
professions, the foreign
consultant was
authorized by the
appropriate GOP
professional regulatory
body to engage in the
practice of those
professions and allied
professions observing the
limits of such authority
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
24.3.3. In order to manifest trust
and confidence in and promote the
development of Filipino
consultancy, foreign consultants
may be hired in the event Filipino
consultants do not have the
sufficient expertise and capability to
render the services required under
the project, as determined by the
Head of the Procuring Entity.
Foreign consultants may be eligible
to participate in the procurement of
consulting services, subject to the
following qualifications:
a) must be registered with the SEC
and/or any agency authorized by
the laws of the Philippines; and
b) when the types and fields of
consulting services in which the
foreign consultant wishes to
engage involve the practice of
regulated professions, the foreign
consultant must be authorized by
the appropriate GOP professional
regulatory body to engage in the
practice of those professions and
allied professions: Provided,
however, That the limits of such
authority shall be strictly
observed.
Audit Activities
foreign consultant,
b. Authorization document
issued by the appropriate
GOP professional
regulatory body to
engage in the practice of
those professions and
allied professions and
stating the limits of such
authority.
the foreign
consultant?
b. Authorization
document issued by
the appropriate GOP
professional
regulatory body to
engage in the practice
of those professions
and allied professions
and stating the limits
of such authority.
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Audit Sub-objective
Audit Criteria
Permit submitted by the
bidder with the HRB/SRB
was issued by the city or
municipality where the
principal place of business of
the prospective bidder is
located
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Lowest Calculated Bid/Highest
Rated Bid, using nondiscretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is
not included in any blacklist
as provided in Section 25.2 of
this IRR. For this purpose, the
GPPB shall maintain a
consolidated file of all
blacklisted suppliers,
contractors, and consultants.
Audit Activities
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Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.3. The post-qualification shall
verify, validate, and ascertain all
statements made and documents
submitted by the bidder with the
Highest Rated Bid, using nondiscretionary criteria, as stated in
the Bidding Documents. These
criteria shall consider, but shall
not be limited to, the following:
a) Legal Requirements. To verify,
validate, and ascertain licenses,
certificates, permits, and
agreements submitted by the
bidder, and the fact that it is
not included in any
blacklist as provided in
Section 25.2 of this IRR. For
this purpose, the GPPB shall
maintain a consolidated file of
all blacklisted suppliers,
contractors, and consultants
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
a. HOPE?
b. members of the BAC?
c. members of the
TWG?
d. members of the BAC
Secretariat?
e. head of the Project
Management Office
(PMO)?
f. head of the end-user
unit?
g. project consultants?
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Audit Sub-objective
Audit Criteria
Audit Activities
b) Technical Requirements. To
determine compliance of the
goods, infrastructure projects, or
consulting services offered with
the requirements specified in the
Bidding Documents, including,
where applicable:
i) Verification and validation of
the bidders stated competence
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Audit Sub-objective
Audit Criteria
Audit Activities
b) Technical Requirements. To
determine compliance of the
goods, infrastructure projects, or
consulting services offered with
the requirements specified in the
Bidding Documents, including,
where applicable:
a. type?
b. amount?
c. form and wording?
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Audit Sub-objective
Audit Criteria
Audit Activities
d. validity period?
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Audit Sub-objective
Audit Criteria
Audit Activities
23.1.
Technical Documents
iii) Statement of the prospective
bidder of all its ongoing and
completed government and private
contracts, including contracts
awarded but not yet started, if any,
whether similar or not similar in
nature and complexity to the
contract to be bid, within the
relevant period as provided in the
Bidding Documents. The statement
shall include all information
required in the PBDs prescribed by
the GPPB.
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Audit Sub-objective
Audit Criteria
Audit Activities
IN CASE OF POST-DISQUALIFICATION OF THE BIDDER WITH THE HIGHEST RATED BID (HRB) -FOR
THE PROCUREMENT OF CONSULTING SERVICES
1. From the records of the
Did the BAC
1. To verify if the BAC, in
BAC
Secretariat,
check
for
immediately notify the
case of post-disqualification
HRB/SRB
of the postinformation
on
the
date
of
of the HRB/SRB immediately
disqualification?
receipt by the postnotified the HRB/SRB in
disqualified bidder of the
writing of the postDid the BAC indicate in
notice and for the grounds
disqualification with the
the notice the grounds
for disqualification indicated
grounds for it.
for post-disqualification?
thereon.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.5. If, however, the BAC
determines that the bidder with
the Highest Rated Bid fails the
criteria for post-qualification, it
shall immediately notify the said
bidder in writing of its postdisqualification and grounds for it.
NOTE:
If the motion for
reconsideration of the
SRB is denied,
proceed to the audit
matrix on Failure of
Bidding.
2. Look for the TWG report
on the post-qualification of
the second rank bidder as
reviewed by the BAC.
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Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
34.6. the BAC shall initiate and
complete the same postqualification process on the bidder
with the second Highest Rated
Bid.
Audit Activities
NOTE:
For each postdisqualification of the
next-rank bidder, the
BAC is to repeat the
post-qualification
process until the
HRRB is declared for
award.
The related audit
activities are likewise
to be repeated.
3. To verify if the BAC
declared the HRB as the
HRRB after its request for
reconsideration was granted
and it was declared postqualified
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Audit Sub-objective
Audit Criteria
o
Audit Activities
denied.
2. Match the name of the
HRRB as approved by the
HOPE with the name of
bidder as indicated in the
BAC Resolution
recommending the HRRB.
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Audit Sub-objective
Audit Criteria
2. To verify if the BAC
completed the postqualification process in not
more than seven (7)
calendar days
Audit Activities
the Answer
a. one representing
the COA?
b. One representing
the duly recognized
private group in a
sector or discipline
relevant to the
procurement at
hand?
c.
One representing a
non-government
organization?
d. With knowledge,
experience or
expertise in
procurement or in
the subject matter
of the contract to
be bid?
e. With no actual or
potential conflict of
interest in the
13. Observers
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Audit Sub-objective
Audit Criteria
representative of the COA, at least
two (2) observers, who shall not
have the right to vote, to sit in its
proceedings where:
a) At least one (1) shall come from a
duly recognized private group in a
sector or discipline relevant to the
procurement at hand, for example:
i)
ii)
iii) For consulting services, a
project-related professional
organization accredited or duly
recognized by the Professional
Regulation Commission or the
Supreme Court, such as, but not
limited to:
(1) PICE;
(2) Philippine Institute of
Certified Public Accountants
(PICPA); and
(3) Confederation of Filipino
Consulting Organizations; and
b) The other observer shall come
from a non-government
organization (NGO).
Audit Activities
the Answer
contract to be bid?
f.
Conformed with
other relevant
criteria determined
by the BAC?
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Audit Sub-objective
Audit Criteria
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
13.4. The observers shall have
the following responsibilities:
a) To prepare the report either
jointly or separately indicating
their observations made on the
procurement activities conducted
by the BAC for submission to the
Head of the Procuring Entity,
copy furnished the BAC
Chairman. The report shall assess
the extent of the BACs
compliance with the provisions of
this IRR and areas of
improvement in the BACs
proceedings;
b) To submit their report to the
procuring entity and furnish a
copy to the GPPB and Office of
the Ombudsman/Resident
Ombudsman. If no report is
submitted by the observer,
then it is understood that the
bidding activity conducted by
the BAC followed the correct
procedure; and
c) To immediately inhibit and notify
in writing the procuring entity
concerned of any actual or
potential interest in the contract
to be bid.
Audit Activities
of non-compliance.
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Audit Sub-objective
Audit Criteria
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Audit Activities
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Special Services Sector
Commission on Audit
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Audit Sub-objective
Audit Criteria
Single Rated Responsive Bid
(SRRB), if lone, to the HOPE
for award of contract
Audit Activities
the Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
recommending award;
b) Abstract of Bids;
c) Duly approved program of
work or delivery schedule, and
Cost Estimates;
d) Document issued by
appropriate entity authorizing
the procuring entity to incur
obligations for a specified
amount; and
e) Other pertinent documents
required by existing laws, rules
and/ or the procuring entity
concerned.
5. In case of approval, to
verify if the Notice of Award
was issued to the winning
bidder immediately and
within the validity period of
the bid security
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
37.1.3. In case of approval, the
Head of the Procuring Entity shall
immediately issue the Notice of
Award to the bidder with the
Highest Rated Responsive Bid. In
the event the Head of the
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Audit Sub-objective
Audit Criteria
Procuring Entity shall disapprove
such recommendation, such
disapproval shall be based only on
valid, reasonable, and justifiable
grounds to be expressed in
writing, a copy furnished the BAC.
Audit Activities
Annex C
PERIOD OF ACTION ON
PROCUREMENT ACTIVITIES
Stage 10
37.1.5. Contract award shall be
made within the bid validity period
provided in Section 28 of this IRR.
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Audit Sub-objective
Audit Criteria
Audit Activities
If further approval by
higher authority is
required, was the
contract approved by
appropriate approving
authority or his/her duly
authorized
representative?
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Audit Sub-objective
Audit Criteria
within ten (10) calendar
days from receipt by the
bidder of the notice from
the BAC that the bidder has
the Lowest Calculated
Responsive Bid, as the case
may be; or
ii) In case of infrastructure
projects, valid PCAB license
and registration for the
type and cost of the
contract to be bid for
foreign bidders, within 30
calendar days from receipt
by the bidder of the notice
from the BAC that the
bidder has the LCRB, when
the treaty or international
or executive agreement
expressly allows submission
of the PCAB license and
registration for the type
and cost of the contract to
be (sic) as a pre-condition
to the notice of award.
h) Posting of performance
security in accordance with
Section 39 of this IRR;
i) Signing of the contract as
provided in Section 37.2 of
this IRR;
j) Approval by higher authority,
if required, as provided in
Section 37.3 of this IRR.
Audit Activities
Form of
Performance
Security
a) Cash, cashiers/
managers check
Amount of
Performance
Security (Equal
to Percentage
of the Total
Contract Price
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Audit Sub-objective
Audit Criteria
issued by a
Universal or
Commercial Bank
b) Bank draft/
guarantee or
irrevocable letter of
credit issued by a
Universal or
Commercial Bank;
Provided, however,
that it shall be
confirmed or
authenticated by a
Universal or
Commercial Bank,
if issued by a
foreign bank.
c) Surety bond
callable upon
demand issued by
a surety or
insurance company
duly certified by
the Insurance
Commission as
authorized to issue
such security.
d) Any combination
of the foregoing.
Audit Activities
Two percent
(2%)
Five percent
(5%)
Proportionate
to share of
form with
respect to total
amount of
security
Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
6. Conformed with
other relevant
criteria determined
by the BAC?
2. From certified copies of
the invitations to the
Observers with evidence of
receipt, compare the date of
receipt with the 3-day
minimum requirement.
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Audit Sub-objective
Audit Criteria
Audit Activities
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Audit Sub-objective
Audit Criteria
Audit Activities
BACs recommendation,
did the HOPE give
instructions to the BAC
on the subsequent
actions to be adopted?
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
5. In case of disapproval of
the recommendation of award
the HOPE shall state the
reasons for disapproval and
instruct the BAC on the
subsequent actions to be
adopted.
documenting
the
factthrough his fault, failed,
b. forfeited the bid security
finding to establish if the refused or was unable
of and
winning bidder was
to:
c. recommended the
responsible for his
imposition of sanctions to
a. submit the
failure, refusal, or
the winning bidder who,
through his fault, failed,
refused or was unable:
a. to submit the documents
required under Section
37.1 of the Revised IRR
of RA 9184,
or
b. to make good its bid by
entering into a contract
with the procuring entity,
or
c. post the required
Performance Security
within the period
stipulated in the Revised
IRR of RA 9184 or in the
Bidding Documents
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
documenting the
deliberations/evaluation
conducted and the
decisions arrived at;
documenting the
recommendations made
to the HOPE,
look for information on the:
disqualification of the
said bidder,
documents required
under Section 37.1
of the Revised IRR
of RA 9184?
or
b. to make good its bid
by entering into a
contract with the
procuring entity?
or
c. post the required
Performance
Security within the
period stipulated in
the Revised IRR of
RA 9184 or in the
Bidding
Documents?
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Audit Sub-objective
Audit Criteria
2. To verify if the BAC, after
disqualifying the winning
bidder who, due to his fault,
refused, failed, or was
unable to enter into contract,
post the required
performance security, or
submit other required
documents within the time
stipulated, initiated and
completed the postqualification process on the
bidder with the second
Highest Rated Bid
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
40.2. In the case of the failure,
refusal or inability of the bidder
with the Lowest Calculated
Responsive Bid/Highest Rated
Responsive Bid to submit the
documents required under Section
37.1 of this IRR or to enter into
contract and post the required
Performance Security, as provided
in this Section, the BAC shall
disqualify the said bidder, and
shall initiate and complete the
post-qualification process on the
bidder with the second Lowest
Calculated Bid/Highest Rated Bid:
Provided, however, That in the
case of consulting services, the
second Highest Rated Bid has
successfully undergone the
negotiation stage in accordance
with Section 33.2.5 of this IRR.
This procedure shall be repeated
until the Lowest Calculated
Responsive Bid/Highest Rated
Responsive Bid is determined for
award. However, if no bidder
passes post-qualification, the BAC
shall declare the bidding a failure
and conduct a re-bidding with readvertisement. Should there occur
another failure of bidding after the
conduct of the contracts rebidding, the procuring entity
concerned may enter into a
negotiated procurement.
Audit Activities
NOTE:
For the audit on the
Post-Qualification for
the Procurement of
Consulting Services
conducted by the BAC,
perform the audit
activities pertaining
to these procurement
activities in another
part of this Guide.
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Audit Sub-objective
Audit Criteria
3. To verify if the BAC, after
disqualifying the winning
bidder with the Single Rated
Responsive Bid (SRRB) who,
due to his fault, refused,
failed, or was unable to enter
into contract, post the
required performance
security, or submit other
required documents within
the time stipulated, declared
the bidding a failure and
conducted a re-bidding with
re-advertisement and/or
posting, as provided for in
Sections 21 and 25 of the
Revised IRR of RA 9184
Audit Activities
NOTE:
For the audit on the
Failure of Bidding for
the Procurement of
Consulting Services
and on the
Competitive/ Public
Bidding for the
Procurement of
Consulting Services,
perform the audit
activities pertaining
to these procurement
activities in other
parts of this Guide.
of non-compliance.
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Audit Criteria
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
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Audit Sub-objective
Audit Criteria
1. To verify if the BAC
declared a failure of bidding
for reason that:
a) No bids were received; or
b) All prospective bidders
were declared ineligible; or
c) All bids failed to comply
with all the bid
requirements, or
d) all bids failed postqualification, or
e) the bidder with the
Highest Rated Responsive
Bid refused, without
justifiable cause, to accept
the award of contract, and
no award was made in
accordance with Section 40
of the RA 9184 and
Revised IRR
Audit Activities
1. From the Minutes of BAC
meetings and other records,
look for information that:
a) No bids were received;
b) All prospective bidders
were declared ineligible;
c) all bids failed to comply
with all the bid
requirements,
d) all bids failed postqualification,
d) the bidder with the
Lowest Calculated
Responsive Bid refused,
without justifiable cause,
to accept the award of
contract, and no award
was made in accordance
with Section 40 of the RA
9184 and Revised IRR.
the Answer
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Audit Sub-objective
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Audit Activities
.
e) the bidder with the
Lowest Calculated
Responsive Bid
refused, without
justifiable cause, to
accept the award of
contract, and no
award was made in
accordance with
Section 40 of the RA
9184 and Revised
IRR?
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Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
Contract (ABC);
had them approved; and
conducted a re-bidding with
re-advertisement and/or
posting
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
35.2. In order to determine the
reason for the failed bidding, the
BAC shall conduct a mandatory
review and evaluation of the terms,
conditions, and specifications in the
Bidding Documents, including its
cost estimates.
35.3. Based on its findings, the
BAC shall revise the terms,
conditions, and specifications, and if
necessary, adjust the ABC, subject
to the required approvals, and
conduct a re-bidding with readvertisement and/or posting, as
provided for in Section 21.2 of this
IRR
NOTE:
For the audit on the
re-bidding conducted
perform the audit
using the portion of
this Guide on
Competitive/Public
Bidding for the
Procurement of
Consulting Services.
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Audit Sub-objective
Audit Criteria
expertise in procurement or in
the subject matter of the
contract to be bid;
b.2. no actual or potential
conflict of interest in the
contract to be bid; and
b.3. conformed with other
relevant criteria determined by
the BAC;
Audit Activities
the Answer
procurement at
hand?
3. One representing a
non-government
organization?
4. With knowledge,
experience or
expertise in
procurement or in
the subject matter of
the contract to be
bid?
5. With no actual or
potential conflict of
interest in the
contract to be bid?
6. Conformed with
other relevant
criteria determined
by the BAC?
6. From certified copies of
the invitations to the
Observers with evidence of
receipt, compare the date of
receipt with the 3-day
minimum requirement.
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
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Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the HOPE
declared a failure of bidding
for reason that:
a. no funds available;
b. there is prima facie
evidence of collusion
between:
b.1. appropriate public
officers or employees of
the procuring entity, or
b.2. between the BAC and
any of the bidders, or
b.3. among the bidders
themselves, or
b.4. a bidder and a third
party,
Audit Activities
1. From the documents on
the declaration of failure of
bidding by the HOPE, look
for information on the
reason for such declaration.
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
including any act which
restricts, suppresses or
nullifies or tends to
restrict, suppress or nullify
competition;
or
c. the BAC is found to have
failed in following the
prescribed bidding
procedures;
or
d. the award of the contract
will not redound to the
benefit of the GOP, for
justifiable and reasonable
grounds such as: (i) if the
physical and economic
conditions have
significantly changed so as
to render the project no
longer economically,
financially, or technically
feasible, as determined by
the Head of the Procuring
Entity; (ii) if the project is
no longer necessary as
determined by the Head of
the Procuring Entity; and
(iii) if the source of funds
for the project has been
withheld or reduced
through no fault of the
procuring entity.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Section 41. The Head of the
Audit Activities
of the
Answer
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
of the
Answer
as determined by the
Head of the
Procuring Entity?
Or
i. the award of the
contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the project is
no longer necessary
as determined by the
Head of the
Procuring Entity?
Or
j. the award of the
contract will not
redound to the
benefit of the GOP,
for justifiable and
reasonable grounds
such as the source
of funds for the
project has been
withheld or reduced
through no fault of
the procuring entity?
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
LIMITED SOURCE BIDDING FOR CONSULTING SERVICES
Limited Source Bidding, otherwise known as selective bidding, is a method of procurement of
consulting services that involves direct invitation to bid by the procuring entity from the list of preselected consultants with known experience and proven capability on the requirements of the particular
contract.
I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Limited Source Bidding was in accordance with
the rules and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Annual Procurement Plan (APP);
2. evidences to support the conclusion that public bidding cannot be ultimately pursued;
3. list of consultants who can undertake the highly specialized type of consulting service;
4. Minutes of BAC meetings on the deliberations made;
5. BAC Resolution recommending the alternative method of procurement: Limited Source Bidding,
duly approved by the HOPE.
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the original mode of
procurement per APP was
public bidding but cannot be
ultimately pursued;
and,
b. the existence of the conditions
to justify Limited Source
Bidding:
b.1. Procurement of highly
specialized type of
consulting services where
only a few consultants are
known to be available,
such that resorting to the
public bidding method will
not likely result in any
additional consultants
participating in the
bidding; or
Audit Question
Yes
No
Particulars
of the
Answer
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Technical Services Office
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Yes
No
Particulars
of the
Answer
approve Limited
Source Bidding as the
method of
procurement?
Audit Question
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
account
capabilities with
respect to
equipment?
e. took into
account
capabilities with
respect to
financial
position?
Audit Sub-objective
Audit Criteria
Audit Activities
3. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
4. On the first day of posting
access the PhilGEPS website,
the website of the procuring
entity concerned, if
available, and website
prescribed by the foreign
government/ foreign or
international financing
institution, if applicable.
Print the page where the
notice was posted (to form
part of the audit evidences).
5. Access the websites at
random during the 7-day
period to verify the postings.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
6. Ahead of any
procurement, request the
BAC Secretariat for advance
information on the first day
of any posting.
7. Conduct ocular
inspection on the first day of
posting.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
NOTE:
Since the requirement of regulations is for the Procuring Entity to undertake all
other procedures for competitive bidding shall be undertaken, except for the
advertisement of Request for Expression of Interest, the audit pertaining to other
phases/activities in Limited Source Bidding shall be as indicated in the Audit Guide
for Competitive/Public Bidding for Consulting Services.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Criteria:
49.4. The BAC of the concerned procuring entity shall directly invite all the consultants
appearing in the pre-selected list. All other procedures for competitive bidding shall be
undertaken, except for the advertisement of Request for Expression of Interest under Section
21.2.1 of the Revised IRR of RA 9184.
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
---------------------------------------------------------------------------------------------------------Prepared by:
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Technical Services Office
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Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
AFTER TWO (2) FAILED BIDDINGS
Documentation of the System for the Registry of Consultants maintained by the Procuring
Entity
Audit Sub-objective
Audit Criteria
1. To verify if the procuring
entity maintained a registry
of Consultants as basis for
selecting the Consultants for
negotiations
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Audit Sub-objective
Audit Criteria
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of this
Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
1. From the
documentation of the
earlier two (2) biddings
conducted, look for
information on the BACs
declaration that there
have been two (2) failed
biddings.
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
adjusted ABC; and
recommendation to the
HOPE for approval.
Bidding Documents
approved by the GPPB or
the Philippine Bidding
Documents for the
Procurement of Consulting
Services, 3rd Edition
(October 2009) issued by
the GPPB and Section 17 of
the Implementing Rules
and Regulations of RA 9184
as amended on September
2, 2009:
Philippine Bidding
Documents for the
Procurement of Goods
and Section 17.1 of the
Implementing Rules and
Regulations of RA 9184,
GPPB.
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
e.
f.
h.
i.
1.
methodology/criteria in
accordance with the Act,
and post-qualification,
as well as the date, time
and place of the pre-bid
conference (where
applicable), submission
of price quotations and
opening of price
quotations;
d.1. including: Following
completion of the
negotiations, the BAC
shall request all
suppliers remaining
in the proceedings to
submit on a specified
date, a best and final
offer with respect to
all aspects of the
proposals, and
d.2. selection of the
successful offer on
the basis of such best
and final offers
meeting the minimum
technical
requirements and not
exceeding the ABC;
Scope of work, where
applicable;
Form of Price Quotation;
Completion Schedule;
Form, Amount, and
Validity of Performance
Security and Warranty;
Form of Contract and
General and Special
Conditions of Contract;
Audit Activities
conference?
- Place of the pre-bid
conference?
- Deadline for submission
of price quotations?
- Place of submission of
price quotations?
- Date of opening of
price quotations?
- Time of opening of
price quotations?
- Place of opening of
price quotations?
- following completion of
the negotiations,
requesting all suppliers
remaining in the
proceedings to submit
on a specified date, a
best and final offer with
respect to all aspects
of the proposals?
- selection of the
successful offer on the
basis of such best and
final offers meeting the
minimum technical
requirements and not
exceeding the ABC?
e. Scope of work?
f. Form Price Quotation?
g. Completion Schedule?
h. Form of Contract and
General and Special
Conditions of Contract?
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
17.1. The Bidding Documents
Audit Activities
Audit Sub-objective
Audit Criteria
Audit Activities
and
k. Form of Contract and General
and Special Conditions of
Contract.
53.1.4. Following completion of
regard to instances of
non-compliance.
NOTE:
Also refer to the
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC conducted
the Pre-Procurement Conference
prior to the posting or the
issuance of the Invitation or
Pre-Procurement
Conference and compare
Audit Question
Yes
No
Particulars
of the
Answer
Request for
Submission of Price
Quotation?
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Submission of Price
Quotation.
a. BAC?
b. Secretariat?
c. unit or officials who
prepared the
Bidding
Documents and
the draft Request
for Submission of
Price Quotation?
d. consultants hired
by the procuring
entity, who
prepared the
Bidding
Documents and
the draft Request
for Submission of
Price Quotation?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
3. To verify if during the PreProcurement Conference the
participants, led by the BAC,
performed the following tasks
and attained the related
objectives:
a. Discussed relevant
information and confirmed the
description of the scope of the
contract, the ABC, and contract
duration;
b. Discussed relevant
information and confirmed that
the procurement is in accordance
with the project procurement
management plan (PPMP) and
annual procurement plan (APP);
c. Discussed relevant
information and confirmed
readiness of the procurement at
hand on the following:
c.1. the availability of
appropriations and
programmed budget for
contract;
c.2. completeness of the
Bidding Documents and their
adherence to relevant general
procurement guidelines;
d. Reviewed, modified and
agreed on the criteria for
eligibility screening, evaluation,
and post-qualification;
e. Reviewed and adopted the
procurement schedule, including
deadlines and timeframes, for
the different activities;
f. Reiterated and emphasized
the importance of confidentiality
and the applicable sanctions and
penalties, as well as agreed on
measures to ensure compliance
with the foregoing;
g. Confirmed that there was no
splitting; and
h. identified the justification for
Pre-Procurement
Conference look for
information on the
presentation of the scope
of the contract, the ABC,
and contract duration, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
description of the scope of
the contract, that there
was no splitting, the ABC,
and the contract duration.
Audit Question
information on the
presentation of
information, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
readiness of the
procurement at hand as
to:
a. availability of
appropriations and
programmed budget
for the contract,
Particulars
of the
Answer
a. Description of the
scope of the
contract?
Pre-Procurement
Conference look for
No
information on the
presentation of the review
of the PPMP and APP, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
procurement is in
accordance with the PPMP
and APP.
Yes
a. availability of
appropriations and
programmed
budget for the
contract?
b. completeness of
the Bidding
Documents?
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
the change in the mode of
procurement from public bidding
to Negotiated Procurement and
agreed on the recommendations
to the HOPE.
Manual of Procedures for the Procurement
of Consulting Services Vol 4 published by
the GPPB:
Audit Question
Yes
No
Particulars
of the
Answer
c. adherence of the
Bidding
Documents with
the PBDs/
customized
Bidding
Documents?
Did the participants
led by the BAC
discuss and confirm
the justifications for
the change in the
mode of procurement
from public bidding to
Negotiated
Procurement and
agreed on the
recommendations to
the HOPE?
Pre-Procurement
Conference look for
information on the
presentation of the criteria
for eligibility screening,
bid evaluation, and postqualification, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the criteria
for eligibility screening,
bid evaluation, and postqualification.
8. From the Minutes of
Pre-Procurement
Conference look for
information on the
presentation of the
procurement schedule,
including deadlines and
timeframes for the
different activities, the nocontact rule, the
deliberation thereon, and
the conclusions reached
as a result of the
deliberation; and analyze
if they led to the
confirmation of the
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
with the approved APP of the
procuring entity. The APP shall bear
the approval of the Head of the
Procuring Entity or second-ranking
official designated by the Head of the
Procuring Entity to act on his behalf,
and must be consistent with its duly
approved yearly budget.
Audit Question
Yes
No
Particulars
of the
Answer
adoption of the
procurement schedule
including deadlines and
timeframes for the
different activities.
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
submitted to Congress.
4.3. For specifically appropriated
projects, agencies can proceed with
the procurement activities prior to
issuance of the notice of award
using as basis the NEP figures.
4.4. For lump-sum appropriations and
Centrally Managed Items (CMIs)
under the agencys budget, the head
of the agency shall identify and
thereafter notify the implementing
units (IUs) of the amount allocated
for the projects they are to
implement. On the basis of said
notification, the heads of the
respective IUs, as procuring entities,
can proceed with the procurement
activities prior to issuance of the
notice of award.
4.5. For Multi-Year Projects (MYPs), for
which the initial funding sourced
from either the existing/current
years budget or the NEP is not
sufficient to cover the total cost of
the project, it is required that a
Multi-Year Obligational Authority
(MYOA) must already have been
issued in accord with DBM Circular
Letter 2004-012 prior to
commencement of any procurement
activity.
Thus, the MYOA shall be a prerequisite for procurement of a multiyear contract. All procurement
activities should be within the total
project cost and categories reflected
in the MYOA issued by DBP for the
said MYP.
4.6. As prescribed under Section 47,
Chapter 8, Subtitle B, Title I, Book V
of the Administrative Code of 1987,
no contract involving the
expenditure of public funds shall be
entered into unless the proper
accounting official of the procuring
entity shall have certified as to the
availability of funds and the
allotment to which the expenditure
or obligation may be properly
charged.
Definition:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
information on the
reiteration and emphasis
of the importance of
confidentiality and the
applicable sanctions and
penalties, as well as the
agreement on measures
to ensure compliance.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
a. validity of the procurement
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to be
made on the basis of the
contract;
c. etc.
and develop appropriate audit
recommendations
Audit Question
Yes
No
Particulars
of the
Answer
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if through a
Resolution the BAC presented
two (2) failed biddings as the
justification for the negotiated
procurement recommended to
the HOPE for approval
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
35.5. Should there occur a second
failure of bidding, the procuring entity
may resort to negotiated
procurement, as provided for in
Section 53.1 of this IRR.
Audit Question
Yes
No
Particulars
of the
Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Question
Yes
No
Particulars
of the
Answer
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Price Quotations
3. Ahead of any
procurement, request the
BAC Secretariat for
advance information on
the first day of any
posting.
4. On the first day of
posting access the
PhilGEPS website, the
website of the procuring
entity concerned, if
available. Print the page
where the notice was
posted (to form part of
the audit evidences).
5. Access the websites at
random during the 7-day
period to verify the
postings.
Submission of Price
Quotations
continuously in
the:
1. PhilGEPS
website for 7
calendar days
starting on the
date of
advertisement?
2. website of the
procuring entity
concerned, if
available, for 7
calendar days
starting on the
date of
advertisement?
OR
From the printouts of the
web pages indicating the
dates of printing, obtained
from and duly certified by
the BAC Secretariat as
true and correct, compare
these dates with the
required dates of posting.
6. Ahead of any
procurement, request the
BAC Secretariat for
advance information on
the first day of any
posting.
7. Conduct ocular
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
2. at the
conspicuous
place reserved
for the purpose
in the premises
of the procuring
entity?
3. as certified by
the head of the
BAC Secretariat
of the procuring
entity?
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To verify the causes of
instances of non-compliance
and develop appropriate
audit recommendations
Audit Activities
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
NOTES:
1. Based on the following requirement of the Manual of Procedures for the
Procurement of Consulting Services Vol 4 published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed with
particular attention given to compliance by the BAC of the following provisions of
the Revised IRR of RA 9184 during bid evaluation up to award:
53.1.4. Following completion of the negotiations, the procuring entity shall request all
suppliers, contractors, or consultants remaining in the proceedings to submit, on a
specified date, a best and final offer with respect to all aspects of their proposals.
53.1.5. The procuring entity shall select the successful offer on the basis of such best and
final offers which should meet the procuring entitys minimum technical requirements and
should not exceed the ABC.
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
EMERGENCY CASES
Emergency Cases - In case of imminent danger to life or property during a state of calamity,
or when time is of the essence arising from natural or man-made calamities or other causes where
immediate action is necessary to prevent damage to or loss of life or property, or to restore vital public
services, infrastructure facilities and other public utilities.
I. APPROVAL OF THE ALTERNATIVE METHOD
A. AUDIT OBJECTIVE:
To verify if the adoption of the Alternative Method: Negotiated Procurement in Emergency Cases
was in accordance with the rules and regulations
B. SUB-OBJECTIVES, CRITERIA, VALIDATION PROCEDURES & SUGGESTED WORKING PAPER
Documents needed for evaluation:
1. copy of the approved Minutes of Pre-Procurement Conference duly certified by the BAC
Secretariat;
2. BAC Resolution recommending negotiated procurement, duly approved by the HOPE;
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated
the existence of an emergency as
follows:
a. imminent danger to life or
property during a state of
calamity, or
b. time is of the essence arising
from natural or man-made
calamities or other causes
where immediate action is
necessary to prevent damage
to or loss of life or property, or
to restore vital public services,
infrastructure facilities and
other public utilities
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
1. From the BAC
Resolution, look for
information on the BACs
validation of an
emergency as follows:
a. imminent danger to life
or property during a
state of calamity, or
b. time is of the essence
arising from natural or
man-made calamities
or other causes where
immediate action is
necessary to prevent
damage to or loss of
life or property, or to
restore vital public
services, infrastructure
facilities and other
public utilities
Yes
Particulars of
the Answer
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
or loss of life or
property, or to
restore vital public
services,
infrastructure
facilities and other
public utilities?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
Particulars of
the Answer
No
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
NOTES:
1. Based on the following requirement of the Manual of Procedures for the Procurement of
Consulting Services Vol. 4 (June
o
for the rest of the procurement procedures up to the award of the contract, the Audit
Guide on the Procedures: Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of bid
securities may be dispensed with.
54.5. Performance and warranty securities, as prescribed in Sections 39 and 62 of this IRR,
shall be submitted for contracts acquired through the alternative methods of procurement,
except for Shopping under Section 52 and Negotiated Procurement under Sections 53.2
emergency cases), 53.9 (small value procurement), 53.10 (lease of real property), and 53.13
(UN agencies).
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
TAKE-OVER OF CONTRACTS
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
a. validity of the procurement
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the contract for the
project has been terminated or
rescinded; and
b. there is a need for immediate
action to prevent damage to or
loss of life or property, or to
restore vital public services,
infrastructure facilities and
other public utilities
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
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Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Activities
53.3.2.
53.3.3. Authority to negotiate
contracts for projects under
these exceptional cases shall be
subject to prior approval by the
Heads of the Procuring Entities
concerned, within their
respective limits of approving
authority.
NOTES:
If negotiation
prospered, proceed to
Post-qualification
then Award using the
Audit Guide for
Competitive/ Public
Bidding for
Consulting Services.
If negotiation failed,
proceed to the next
audit Sub-objective.
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
WHEN NEGOTIATION WITH THE SECOND HRB FOR THE PROJECT FAILED
When the
1. When the negotiation with 1. From the Minutes of the
BAC meetings, TWG
negotiation with
the second HRB failed, to
evaluation reports with
the second HRB
verify if the BAC negotiated
supporting documents duly
failed, did the BAC
the contract with the bidder
reviewed by the BAC, look
negotiate the
with the third highest rated
for information on the
contract with the
bid for the project under
BACs negotiations.
third highest rated
consideration at the bidders
bid at the bidders
original bid price
original price?
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
53.3.
NOTES:
If negotiation
prospered, proceed to
Post-qualification
then Award using the
Audit Guide for
Competitive/ Public
Bidding for
Consulting Services.
If negotiation failed,
proceed to the next
audit Sub-objective.
WHEN NEGOTIATION WITH THE THIRD HRB FOR THE PROJECT FAILED
1. From the Minutes of the
1. To verify if the BAC used
the Procuring Entitys registry BAC meetings, TWG
evaluation reports
of consultants under the type
supported with copies of
of contract/project where the
the Procuring Entitys
subject contract falls as basis
Registry of Consultants,
for preparing the shortlist of
look for information on the
consultants to be invited for
basis of identification of the
the negotiations
consultants to be invited for
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
Audit Activities
Answer
NOTE:
Proceed to the Audit
Guide on Bid
Evaluation and
onwards under
Competitive/Public
Bidding for
Consulting Services.
QUESTION:
What will happen if
after negotiation
which prospered, the
bidder was postdisqualified?
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
a. validity of the procurement
activities and outputs
including the validity of the
resulting contract;
b. validity of any payment to
be made on the basis of
the contract;
c. etc.
and develop appropriate
audit recommendations
Audit Activities
recommendations.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
NOTES:
1. Based on the following requirement of the Manual of Procedures for the
Procurement of Consulting Services Vol. 4 (June 2006)published by the GPPB:
o
for the rest of the procurement procedures up to the award of the contract, the
Audit Guide on the Procedures: Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
ADJACENT OR CONTIGUOUS
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated
that:
a. the project is adjacent or
contiguous to an on-going
Consulting Service;
b. that the original contract is
the result of a Competitive
Bidding;
c. the subject contract to be
negotiated has similar or
related scopes of work;
d. it is within the contracting
capacity of the consultant;
e. the consultant uses the same
prices or lower prices as in the
original contract;
f. the amount involved does not
exceed the amount of the
ongoing project;
Audit Activities
1. From the minutes
of BAC meetings
look for information
on the BACs
validation that:
a. adjacent or
contiguous to an
on-going project;
b. that the original
contract is the
result of a
Competitive
Bidding;
c. the subject
contract to be
negotiated has
similar or related
scopes of work;
d. it is within the
contracting
capacity of the
consultant;
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
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Audit Sub-objective
Audit Criteria
g. the consultant has no
negative slippage/delay;
h. the negotiations for the
procurement are commenced
before the expiry of the
original contract.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
53.4. Adjacent or Contiguous. Where
Audit Activities
e. the consultant uses
the same prices or
lower unit prices
as in the original
contract less
mobilization cost;
f. the amount
involved does not
exceed the
amount of the
ongoing project;
g. the consultant has
no negative
slippage/delay,
h. the negotiations
for the
procurement are
commenced
before the expiry
of the original
contract.
Yes
No
Particulars of
the Answer
d. it is within the
contracting
capacity of the
consultant?
e. the consultant uses
the same prices or
lower prices as in
the original
contract?
f. the amount
involved does not
exceed the
amount of the
ongoing project?
g. the consultant has
no negative
slippage/delay?
h. the negotiations
for the
procurement are
commenced
before the expiry
of the original
contract?
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars of
the Answer
Procurement
(Adjacent or
Contiguous) as the
method of
procurement?
Audit Sub-objective
Audit Criteria
resulting contract;
b. validity of any payment to be
made on the basis of the
contract;
c. etc.
Audit Activities
Yes
No
Particulars of
the Answer
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
Also determine if
appropriate actions
were taken by the
auditee in regard to
instances of noncompliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES
portion of this
Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
Prepare the
appropriate audit/
validation document
reflecting the results
of the audit/validation
and transmit to
Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
NOTES:
If negotiations
prospered, proceed to
Award using the Audit
Guide for Competitive/
Public Bidding for
Consulting Services.
If negotiations failed,
the project is to be
subjected to
competitive/public
bidding. For the audit,
adopt the Audit Guide
for the Procurement of
Consulting Services by
Competitive/Public
Bidding.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTES:
1.
for the rest of the procurement procedures, the Audit Guide on the Procedures:
Competitive/Public Bidding are to be observed.
2. Other relevant criteria
Implementing Rules and Regulations (IRR) of RA 9184, as amended on September 2, 2009:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
AGENCY-TO-AGENCY
Negotiated Procurement is a method of procurement for consulting services whereby the
procuring entity directly negotiates a contract with a technically, legally, and financially capable
consultant in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) TakeOver of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Highly-Technical
Consultants, (7) Small Value Procurement.
Agency-to-Agency - Procurement of consulting services from another agency of the GOP.
For purposes of this Section 53.5 of the Revised IRR of RA 9184, the term agency
excludes GOCCs incorporated under Batas Pambansa Blg. 68, otherwise known as the
Corporation Code of the Philippines. The GPPB shall issue guidelines to implement this provision
NOTE:
No Audit Guide has been developed for this method of procurement
since this involves Government-to-Government transactions and in the
absence of GPPB Guidelines.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
HIGHLY TECHNICAL CONSULTANTS
highly technical or
proprietary or
primarily confidential or
policy determining
Audit Activities
1. From the documents
justifying the hiring of
highly technical
consultant, look for
information on the that
the work is:
a. highly technical or
b. proprietary or
c. primarily confidential
or
d. policy determining.
Yes
No
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
2. From the
appointment/job
order/contract (including
renewals, if any) of the
individual consultant look
if the term does not
exceed six (6) months.
Particulars of
the Answer
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
c. etc.
and develop appropriate audit
recommendations
Audit Activities
Audit Question
Yes
No
Particulars of
the Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
Also determine if
appropriate actions were
taken by the auditee in
regard to instances of
non-compliance.
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion
of this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Procurement Procedures:
NEGOTIATED PROCUREMENT OF CONSULTING SERVICES
SMALL-VALUE PROCUREMENT
Negotiated Procurement is a method of procurement for consulting services whereby the
procuring entity directly negotiates a contract with a technically, legally, and financially capable
consultant in any of the following cases: (1) Two Failed Biddings, (2) Emergency Cases, (3) TakeOver of Contracts, (4) Adjacent or Contiguous, (5) Agency-to-Agency, (6) Highly-Technical
Consultants, (7) Small Value Procurement.
Small-Value Procurement - Where the amount of procurement does not exceed the
thresholds prescribed in Annex H of the IRR, RA 984, the procuring entity shall draw up a list of
at least three (3) consultants of known qualifications which will be invited to submit proposals.
The thresholds for this method of procurement are:
a) For NGAs, GOCCs, GFIs, and SUCs, Five Hundred Thousand Pesos (P500,000).
b) For LGUs, in accordance with the following schedule:
DOF Classification of LGUs
1st Class
2nd Class
3rd Class
4th Class
5th Class
6th Class
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the BAC validated:
a. that the original mode of
procurement per APP was
public bidding but cannot be
ultimately pursued;
and,
b. the existence of the conditions
to justify Small-Value
Procurement and the amount
involved did not exceed the
thresholds in Annex H of the
Revised IRR of RA 9184.
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Question
Yes
No
a.
b. Small Value Procurement of
goods, infrastructure projects, and
consulting services under 53.9 of the
IRR.
---------------------------------------------------------------------------------------------------------Prepared by:
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Republic of the Philippines
Particulars
of the
Answer
Audit Sub-objective
Audit Criteria
Audit Activities
No
Particulars
of the
Answer
Yes
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
Also determine if
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
Yes
No
Particulars
of the
Answer
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
3. To communicate the results of
the audit with the auditees
Management
COA Circular No. 2009-006 dated
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
1. To verify if the Procuring
Entity obtained price
quotations from at least 3
bona fide consultants
Implementing Rules and Regulations
(IRR) of RA 9184, as amended on
September 2, 2009:
Audit Activities
Did the
procurement unit
of the Procuring
Entity obtain price
quotations from at
least 3 bona fide
consultants?
Did the
procurement unit
of the Procuring
Entity post the
notice of award in:
a. the PhilGEPS
for a period of 7
calendar days?
---------------------------------------------------------------------------------------------------------Prepared by:
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Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
c. any conspicuous place in
the premises of the
procuring entity
for a period of 7 calendar
days
Audit Activities
the Answer
b. the website of
the procuring
entity for a
period of 7
calendar days?
c. any
conspicuous
place in the
premises of the
procuring entity
for a period of 7
calendar days?
1. . . .
2. . . .
3. Procedural Guidelines
2. . . .
3. Procedural Guidelines
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations?
Did the
procurement unit
of the Procuring
Entity prepare an
Abstract of
Quotations after
the deadline for
submission of price
quotations?
---------------------------------------------------------------------------------------------------------Prepared by:
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Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
2. . . .
3. Procedural Guidelines
which complied
with the
specifications and
other terms and
conditions stated in
the RFQ?
b. the website of
the procuring
entity?
c. any
conspicuous
place in the
premises of
the procuring
entity?
1. . . .
2. . . .
3. Procedural Guidelines
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
NOTE:
Also refer to the
OFFENSES AND
PENALTIES portion of
this Audit Guide.
NOTE:
Also refer to the
OFFENSES AND
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
PENALTIES portion of
this Audit Guide.
3. To communicate the
results of the audit with the
auditees Management
COA Circular No. 2009-006 dated
Other criteria:
54.4. Except for Limited Source Bidding under Section 49 of this IRR, submission of
bid securities may be dispensed with.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
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Commission on Audit
Republic of the Philippines
ON OFFENSES AND
SANCTIONS / PENALTIES
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Activities
the Answer
Audit Observation
Memoranda,
reports/comments of
observers,
c. Unduly influencing or
exerting undue pressure on
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
2. To Verify if the HOPE
conducted investigation and
recommended the imposition
of sanctions/ penalties to
private individuals and any
public officer conspiring with
them, for any of the following
violations:
a. submission of falsified
eligibility documents,
b. submission of bids that
contained false information,
c. participating in public
bidding using the name of
another,
d. allowing another to use
ones name to participate in a
public bidding,
e. withdrawing a bid, after
he had been adjudged as the
LCB/HRB,
Audit Activities
the Answer
Audit Observation
Memoranda,
reports/comments of
observers,
f. refusing to accept an
award and to enter into
contract , after he had been
adjudged as the LCRB/HRRB,
g. refusal or failure to post
the required performance
security,
h. termination of the
contract,
i. refusal to clarify or validate
in writing its bid during post
qualification within a period
of seven calendar days from
receipt of the request for
clarification,
j. withdrawing from bidding
habitually,
k. submitting late Bids or
patently insufficient bid for at
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
a) Submitting eligibility
requirements of whatever kind
and nature that contain false
information or falsified documents
calculated to influence the
outcome of the eligibility screening
process or conceal such
information in the eligibility
requirements when the
information will lead to a
declaration of ineligibility from
participating in public bidding.
b) Submitting Bidding Documents
of whatever kind and nature that
contain false information or
falsified documents or conceal
such information in the Bidding
Documents, in order to influence
the outcome of the public bidding.
c) Participating in a public bidding
using the name of another or
allowing another to use ones
name for the purpose of
participating in a public bidding.
d) Withdrawing a bid, after it shall
have qualified as the Lowest
Calculated Bid/Highest Rated Bid,
or refusing to accept an award,
without just cause or for the
purpose of forcing the procuring
entity to award the contract to
another bidder. This shall include
the non-submission within the
prescribed time, or delaying the
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
a) Submission of eligibility
requirements containing false
information or falsified documents.
b) Submission of Bids that contain
false information or falsified
documents, or the concealment of
such information in the Bids in
order to influence the outcome of
eligibility screening, or any other
stage of the public bidding.
c) Allowing the use of ones name,
or using the name of another for
purposes of public bidding.
d) Withdrawal of a bid, or refusal
to accept an award, or enter into
contract with the Government
without justifiable cause, after he
had been adjudged as having
submitted the Lowest Calculated
Responsive Bid or Highest Rated
Responsive Bid.
e) Refusal or failure to post the
required performance security
within the prescribed time.
f) Termination of the contract due
to the default of the bidder.
g) Refusal to clarify or validate in
writing its bid during postqualification within a period of
seven (7) calendar days from
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
a. declaration of
failure of
bidding?
b. non-award of
the contract?
c. disapproval of
the results of
bid evaluation/
HRB?
d. disapproval of
the short listed
consultants?
e. rejection of any
and all bids?
NOTE:
For NO
answers, the
Auditor may
conduct further
audit and enhance
this Audit Guide
by incorporating
the identified
additional audit
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
the contract in the following
situations:
a) If there is prima facie evidence
of collusion between appropriate
public officers or employees of the
procuring entity, or between the
BAC and any of the bidders, or if
the collusion is between or among
the bidders themselves, or
between a bidder and a third
party, including any act which
restricts, suppresses or nullifies or
tends to restrict, suppress or
nullify competition;
Audit Activities
objectives and
criteria.
Otherwise, he/she
may recommend a
fraud or
performance audit
to the proper COA
Office.
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines
Audit Sub-objective
Audit Criteria
Audit Activities
the Answer
5. In case of disapproval of
the recommendation of award
the HOPE shall state the reasons
for disapproval and instruct the
BAC on the subsequent actions
to be adopted.
3. To communicate the
results of the audit with the
auditees Management
---------------------------------------------------------------------------------------------------------Prepared by:
Technical Services Office
Special Services Sector
Commission on Audit
Republic of the Philippines